Question

Economic quizs, please help check my answers.

UNIVERSITY JON Question 1 Ia member of a cartel is the first to alert authorities to the cartel behavior, which of the following w occur to this member firm? Not yet answered Points out of 1.00 P er question 3 10 11 12 Select one: • A. The firm will not be penalized. B. The firm's most senior managers will face jail time. 5 16 17 18 C. The firm will face significant fines. 21 22 23 24 D. The firm will not be considered whistle blowers. The European Commission is comprised of npt Question 2 Not yet answered Points out of 1.00 P Flat question Select one: A. 20 people, two people from each of the member countries B. 12 people, one person from each of the member countries C. 56 people, two people from each of the member countries • D. 28 people, one person from each of the member countries A 40 POR 2204 10/2011

Answer 1

Ques 1: If a member of a cartel is the first to alert authorities to the cartel behavior, which of the following will occur to this member firm?
Answer:A: The firm will not be penalized.
Reason: This is just to stop the cartel formation, authorities provides a sort of incentive if a cartel member reports the cartel formation, it won't be penalized and all the proceedings will be done anonymously.
Question 2: The European Commission is comprised of
Answer:D: 28 people, one person from each of the member countries.

Question 3: An insurmountable barrier to entry can enable a firm to earn positive economic profits in------
Answer: C: the short run and the long run
Reason: When there is barrier to entry, firm makes positive normal profit because firm fixes price above equilibrium price.

Question 4:
Which of the following is True regarding Tacit collusion?
Answer: A: It is an informal understated agreement.
Reason:Tacit collusion is unwritten to create price leadership. In general, collusion is illegal but not when it is Tacit collusion.

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