Which of the following is least likely to violate the Sherman Act or the Clayton Act?
A. Competitive firms A, B, and C meet and agree to charge a common price.
B. Competitive firms D and E, each with 35 percent market shares, merge into a single firm.
C. Competitive firms F and G independently charge lower prices to frequent customers than
to occasional customers.
D. Large dominant firm H forces buyers to purchase its product X in order to buy its popular
Answer: C
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In the short run, if the stock of capital ________ there will be more depreciation
A) remains stable B) grows C) declines D) grows, declines, or remains stable
What three conditions must be satisfied in order for the Coase theorem to work?
What will be an ideal response?
The above figure shows Bobby's indifference map for soda and juice. B1 indicates his original budget line. B2 indicates his budget line resulting from an increase in the price of soda. From the graph, one can conclude that
A) Bobby views soda as an inferior good. B) Bobby's demand for soda is perfectly inelastic. C) Bobby views soda as a normal good. D) the income elasticity of demand for soda is 1.
EFI Conveyor Systems recently visited a local AC motor distributor. This transaction most likely involves:
A. vertical integration. B. contract or vertical integration. C. spot exchange. D. contract.