If price fixing by competitors is necessary because without it a firm will go bankrupt, is the price fixing legal?
What will be an ideal response?
No, price fixing by competitors is always illegal. Regardless of whether a firm will go bankrupt or not, this sort of price fixing is illegal.
You might also like to view...
The winner's curse is more likely
a. when there is only one bidder b. when demand for the good being auctioned is increasing c. when the value of the good being auctioned is common knowledge d. when the value of the good being auctioned is uncertain e. when the marginal cost of information is low
All points on the production possibilities curve are:
a. unattainable. b. fair. c. efficient. d. optimal.
When the federal government deregulated the savings and loan industry,
a. nearly one third of all savings and loans failed by 1987 b. interest rates on loans made by savings and loans decreased c. profits of the savings and loans increased d. the FSLIC stopped insuring deposits e. the savings and loans restricted their loans to fairly riskless loans like home mortgages
Refer to the graph shown. The output range in region b is associated with:
A. diseconomies of scale. B. diminishing marginal productivity. C. constant returns to scale. D. economies of scale.