Price leadership is a form of

A. tacit collusion.
B. explicit collusion.
C. monopolistic competition.
D. a cartel policing mechanism.


Answer: A

Economics

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Suppose there are only three consumers in the market for a good and each consumer will buy only one unit of the good. Their individual economic values for the good are $6, $8, and $12, respectively. If the market price for the good is $10, what is the total consumer surplus for the three buyers?

A. $6 B. $12 C. $4 D. $2 E. $8

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If the government imposes a price ceiling below the monopolist's average cost curve, then in the long run the regulation makes:

A. consumers worse off. B. consumers better off. C. the monopolist better off. D. None of the statements is correct.

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Which of the following is illegal according to the antitrust laws?

A) output restrictions B) price discrimination based on cost differences C) vertical mergers D) price fixing

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