Collusion is
A) legal under U.S. antitrust laws if the intent is to increase competition.
B) necessary for firms to raise money by borrowing from investors or from banks in order to fund research and development required to develop new products.
C) an agreement among firms to charge the same price or otherwise not to compete.
D) common among monopoly firms.
C
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The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, compared to a perfectly competitive market, the change in consumer surplus is
A) A. B) A + B + C. C) A + B + C + D + E. D) zero.
Rent controls and controls on other prices often aggravate the very problem they are intended to solve
a. True b. False Indicate whether the statement is true or false
The cost of dispensing fluoxetine (the generic for Prozac) is about $5 to $10 per prescription, but the consumer's price at most pharmacies is about $85. This suggests that the market for prescription drugs is:
A. a pure monopoly. B. something that cannot be explained by economic theory. C. not very competitive. D. perfectly competitive.
A counterparty to a financial instrument is always the:
A. person or institution that purchases the financial instrument. B. person or institution that is on the other side of the financial contract. C. government agency guaranteeing the value of the instrument. D. issuer of the financial instrument.