Agreements among competing sellers to maintain prices and share markets
A) are usually unenforceable in court and illegal under many state laws and under federal law where applicable.
B) are very common because they lead to economies of scale and hence greater efficiency.
C) enable all sellers to cover their sunk costs but do not guarantee that any seller will be able to cover marginal cost.
D) usually result in greater total output but also in higher prices to consumers.
A
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The EU's antitrust chief in November 2008 fined car glass producers Asahi, Pilkington, Saint-Gobain and Soliver more than 1.3 billion euros ($1.66 billion) for price-fixing, the largest sum ever levied by the EU for a cartel
Price fixing is a violation of ________. A) price fixing legislation B) antitrust law C) Federal Trade Commission D) Division of the U.S. Department of Justice
The exchange rate is kept the same across geographically-separate markets by
A) hedging. B) speculation. C) government regulation. D) arbitrage.
The Consumer Price Index excludes all of the following, except one. Which one is included in the CPI?
a. Services purchased directly by consumers b. Raw materials c. Services purchased by the government d. Machinery purchased by firms e. Intermediate goods purchased by firms
Because many events cannot be foreseen, investment is made with imperfect knowledge.
Answer the following statement true (T) or false (F)