Answer the following statements true (T) or false (F)
1) Even if a firm is found guilty of price fixing, after paying all imposed fines, it is still possible for the firm to earn positive economic profit from the price fixing scheme.
2) A manager of a firm located in the United States that sells some of its products abroad needs to comply only with United States antitrust law as the firm is only bound by the laws of the country in which it is located.
3) If a luxury handbag firm enters into an agreement with its distributors by setting the minimum price its distributors can resell its handbags, United States antitrust agencies could examine this agreement using the rule-of-reason.
4) If a software company enters into an agreement with its distributors to only resell its software in 5 specific states, under United States antitrust laws, this agreement is illegal per se.
5) If a software company charges different prices for its product in different areas of the United States, under United States antitrust laws, this agreement is illegal per se.
1) TRUE
2) FALSE
3) TRUE
4) FALSE
5) FALSE
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Refer to above figure. In autarky, Country P was producing at point 5. With trade, would its production point be found above or below point 5? Explain why
What must happen in the K/L intensity ratio in the production of each of the products in this country when moving from autarky to free trade?
Albro Martin (1971) argues that the Interstate Commerce Commission (1887–1995) was
(a) never a case of "capture." (b) "captured" by the railroads themselves. (c) "captured" by the customers of the railroads. (d) too ineffective to warrant "capture" by anyone.
A multi-plant firm has three plants. At its current production levels, the marginal cost of production is $2 at plant 1, $2.25 at plant 2, and $2.10 at plant 3. The firm's overall marginal cost of production is ________.
A) $2.25 B) $6.35 C) $7.20 D) $4.25
Price discrimination is prohibited by antitrust laws
a. True b. False Indicate whether the statement is true or false