Firms use collective bargaining to set higher market prices for their products.
Answer the following statement true (T) or false (F)
False
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Show graphically and explain the profits and losses of buying futures relative to buying call options
What will be an ideal response?
____________ has settled four different allegations for illegal pharmaceutical marketing activities since 2002.
Fill in the blank(s) with the appropriate word(s).
Firm A, Firm B, and Firm C are the exclusive producers of a satellite video technology that revolutionized television services. The companies have formed a cartel to limit production and fix prices to maximize profits for all members. In the given scenario, which of the following should be the ideal strategy for Firm A? a. Produce the agreed-upon quota while keeping track of the production
levels of the other members of the cartel. b. Produce less than the quota while raising its prices to keep demand high. c. Produce more than the quota while lowering its prices to capture a higher market share. d. Produce the agreed-upon quota while seeking to differentiate its product to capture a higher market share.
In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. The price paid by buyers increases by $2 and the after-tax price received by sellers falls by $3 . The
government is able to raise $750 per month in revenue from the tax. The deadweight loss from the tax is a. $250. b. $125. c. $75. d. $50.