Use the following scenario to answer the following
questions:
Kit-N-Sit and Kittysitters are two cat-sitting services in Kent,
Ohio. There are no other cat-sitting services, so the market is
considered to be a duopoly.
According to the kinked demand curve theory, if Kit-N-Sit cuts
prices, Kittysitters will ________; if Kit-N-Sit raises prices,
Kittysitters will ________.
| a | do nothing and leave prices unchanged; cut prices |
| b | cut prices; do nothing and leave prices unchanged |
| c | raise prices; do nothing and leave prices unchanged |
| d | do nothing and leave prices unchanged; raise prices |
| e | do nothing and leave prices unchanged; do nothing and leave prices unchanged |
Suppose Lana lives in a small college town where, every weekend, 10 independent food cart owners set up shop and sell hot dogs on the street. They are popular with students, and they frequently locate where students hang out. One evening, Lana overhears the conversation of three of the food cart owners as they conspire to raise the price of their hot dogs. That same night, she reports the conversation to the Department of Justice via their antitrust complaint website. Why might the Department of Justice NOT send an agent to investigate the collusion attempt that Lana witnessed?
| a | To ensure small businesses a fair shot at competing with larger businesses, President Obama issued an official executive order to the Department of Justice in 2012 to stop pursuing antitrust violations involving small businesses only. |
| b | There is not a law that prohibits collusion among competitors. |
| c | The Department of Justice lacks the resources to investigate every case of collusion reported. |
| d | Collusion among small competitors like street vendors is actually beneficial to consumers. |
| e | Antitrust laws are applicable only to collusion attempts that occur on federal government property and the collusion attempt occurred on private property. |
When Franklin earns more income but still works less, leisure is a ________ good for him.
| a | normal |
| b | substitute |
| c | necessity |
| d | complement |
| e | luxury |
1) According to the kinked demand curve theory, if Kit-N-Sit cuts prices, Kittysitters will cut prices .if Kit-N-Sit raises prices, Kittysitters will do nothing and leave prices unchanged.
2) Antitrust laws are applicable only to collusion attempts that occur on federal government property and the collusion attempt occurred on private property.
3) When Franklin earns more income but still works less, leisure is a normal good for him.
Use the following scenario to answer the following questions: Kit-N-Sit and Kittysitters are two cat-sitting services...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...