Which of the following can be a consequence of group boycotts?

Group boycotts occur when a group of businesses or individuals agrees to avoid dealing with a particular company or entity, often as a way to exert pressure or influence behavior. A significant consequence of such actions is legal action for damages suffered by the boycotted party. This is because group boycotts can violate antitrust laws, which are designed to promote fair competition and prevent the manipulation of markets.

When a group implements a boycott, the targeted entity may experience loss of business, reputation damage, and other negative impacts. If the affected party can demonstrate that the boycott was harmful and violated legal provisions, they can pursue legal recourse. This might include claims for damages, which can result in financial restitution for losses incurred due to the boycott. Legal action is a serious consequence because it underscores how collective actions, especially when they restrict market participation, can lead to liability issues for the participating members of the boycott.

The other options do not accurately reflect the potential outcomes of group boycotts. Increased cooperation or enhanced competition may actually diminish as entities group together against a common target. Likewise, while consumers may find commission rates affected due to market dynamics, the immediate consequence of a boycott is more closely related to legal implications rather than direct changes in pricing structures or business