Answer the following statement(s) true (T) or false (F)
1. The Robinson-Patman Act was designed to stop resale price maintenance.
2. It is possible for a firm engaging in predatory pricing to make a profit on the good even thought the price is set artificially low.
3. It is possible to avoid the prisoners' dilemma as long as the interaction is repeated and has a definite ending date.
4. Fair trade refers to the fact that retailers are free to set their price in the absence of resale price maintenance.
5. An attorney that finds a loophole in a law has formed a creative response to the law.
1. False
2. False
3. False
4. False
5. True
You might also like to view...
Which of the following should be held constant when calculating an income elasticity of demand?
a. the quantity of the good demanded b. the price of the good c. income d. All of the above should be held constant.
Which of the following statements about the distribution of physicians among specialties is true in the United States?
a. The majority of physicians specialize in general/family practice. b. There are twice as many generalists as there are specialists. c. There are twice as many specialists as there are generalists. d. The specialty distribution in the U.S. is similar to that of the rest of the world. e. None of the above.
In which market structure is there clear interdependence between individual firms with regard to prices and sales? a. pure competition
b. monopolistic competition. c. oligopoly. d. monopoly.
Denmark is an importer of computer chips and adds a $5 per chip tariff to the world price of $12 per chip. Suppose Denmark removes the tariff. Which of the following outcomes is not possible?
a. More Danish-produced chips are sold in Denmark. b. More foreign-produced chips are sold in Denmark. c. Danish consumers of chips become better off. d. Total surplus in the Danish chip market increases.