Accounting Multiple Choice Question – 19 July 2025

Supporters of anti-monopoly enforcement argue that the real gain from such enforcement is?

Select ONE answer:

1. That it encourages firms to engage in research, which leads to new products being produced
2. That it serves to deter firms from engaging in such practices as collusion, price-fixing and deceptive advertising
3. That it forces firms to produce efficiently
4. The revenue generated from the fines paid by those individuals who are found guilty of anti-monopoly violations which can be used for socially worthwhile causes

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > The main effect of anti-monopoly enforcement is deterrence – there is little innovation effect.
3. Not correct
4. Not correct

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