Question

please check my answers (4)

Questi 13 Not yet answered Points out of 1.00 If four electronics companies agree to decrease their production of cell phones and raise the price of their cell phones to $400, this is an example of Flag question Select one: A. price fixing 8.market division C. monopolization D. bid rigging Antitrust laws are laws that Oeste 14 Not yet answered Points out of 1.00 P Flag question Select one: • A promote competition Bassist firms in earning greater profit C.create barriers to entry b. support monopolies

Answer 1

13.

Answer: A

This is price fixing, since two conditions of such agreement are fulfilled – one is reduction of quantity and the other is the increasing price.

14.

Answer: A

This law promotes competition between firms so that there is no unfair means of business and consumers get better price-deal.

15.

Answer: D

This is the unfair way of keeping price at the high level so that competition in the market could be reduced.

If there is no barrier to entry (means no firm get entry in market), such cartel becomes stable.

16.

Answer: D

Profit = (Price – ATC) × Units

            = (200 – 198) × 50,000

            = 2 × 50,000

            = 100,000

In the long-run there should not be any economic profit, since ATC becomes tangent to demand curve; this gives the equality of price and ATC; therefore, there should not be any gap of economic profit.