Relative to explicit price fixing, with implicit price fixing:
A. firms will find it more difficult to figure out why the price leader has set the price that it has.
B. the reasons for the price leader's pricing strategy will be more clear and less ambiguous.
C. firms face a higher risk of prosecution for antitrust violations.
D. consumers will pay higher prices.
Answer: A
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A bank cannot create money unless its ________
A) required reserves are greater than actual reserves B) excess reserves are zero C) desired reserves are greater than actual reserves D) excess reserves equal deposits multiplied by the reserve ratio
Refer to Figure 13-13. What is the output price?
A) P4 B) P3 C) P2 D) P1
Assume that autonomous consumption equals $200 and disposable income equals $1000. If total consumption equal $800, then the mpc equals
A) 0.2. B) 0.6. C) 0.8. D) 1.0.
Which of the following is an example of a direct tax?
a. sales tax b. property tax c. gasoline tax d. income tax