Four propane delivery firms have a tacit agreement to charge a service fee of $50 in addition to $5 per gallon of propane. If the firms' cost of propane increases and one of the four firms advertises that it will increase the service fee to $75 next month, this is an example of ________.
A) a preannouncement
B) a precommitment
C) a meet-the-competition clause
D) price leadership
A) a preannouncement
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Refer to above figure. What happens to the Consumer Surplus of Hungarian customers as a result of this subsidy?
What will be an ideal response?
The market demand for a good is determined by horizontally summing the demand curves of individual consumers
Indicate whether the statement is true or false
The above figure shows the demand and cost curves facing a monopoly. If a $100 per unit tax is charged, the loss in welfare resulting from the tax is
A) $250. B) $312.50. C) $1,250. D) $1,562.50.
One problem with the European Union's choice regarding equality versus efficiency is that it may inadvertently shrink the size of its "economic pie"
a. True b. False Indicate whether the statement is true or false