How is price fixing among firms treated under antitrust policy? Give two examples of legal actions against price fixing
What will be an ideal response?
Price fixing is treated strictly. Evidence of price fixing, by large or small firms, will be cause for antitrust violations. Just the attempt to fix prices or to rig market outcomes are considered illegal even if they are not successful in increasing monopoly dominance. Such violations are called per se violations because they are illegal in and of themselves and are not subject to the rule of reason.
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An individual with a Ph.D. in physics who can find employment only in a pizza parlor would be considered: a. discouraged
b. underemployed. c. overemployed. d. voluntarily unemployed. e. long-term unemployed.
The recession of 1937-38 could be blamed on
A. the Roosevelt Administration's deficit spending. B. the Roosevelt Administration's attempt to balance the budget. C. the Federal Reserve's driving down interest rates. D. a large tax cut.
What does it mean for a producer to internalize an externality?
A) The producer is limiting outsourced production. B) The producer is prohibited from producing products which generate externalities. C) The producer must find ways to address externality problems which extend beyond geographic borders. D) The producer is forced to factor into production costs the cost of the externalities created in their production of output.
Which of the following statements is FALSE?
A) Included in the firm's short-run production function are both fixed and variable inputs. B) An efficient firm can obtain more output than the production function shows. C) The production function shows the technical relationship between a firm's inputs and outputs. D) The production function presents the technically efficient methods of combining inputs to produce output.