Question : 22) Price fixing A) always a violation of the law. B) allowed : 1241319

22) Price fixing

A) always is a violation of the law.

B) is allowed only if otherwise a firm would go bankrupt.

C) is one of the business practices prohibited by the Clayton Act.

D) is a violation of the law only when it is combined with predatory pricing.

E) is legal if the businesses have received prior clearance from the Justice Department.

23) Under what conditions would it be legal for two bakeries in Minneapolis to explicitly agree to raise their prices by 5 percent?

A) if the price rise was not predatory

B) if the price rise did not measurably increase producer surplus

C) never

D) if the price rise did not harm consumers in the long run by reducing competition

E) if the price rise was necessary to keep one or both bakeries from closing.

24) Setting a price so low that competitors are driven out of a market and then boosting the price is called

A) predatory pricing.

B) a tying arrangement.

C) resale price maintenance.

D) price fixing.

E) price discrimination.

25) When an oligopoly reduces its price with the intent of driving away its competitors, it is said to be engaging in

A) pricing differential.

B) predatory pricing.

C) price fixing.

D) a price-tying agreement.

E) price discrimination.

26) Economists are skeptical that ________ occurs very often because firms engaging in it are certain to suffer an economic loss for a period of time.

A) a tying arrangement

B) inefficient resale price maintenance

C) predatory pricing

D) efficient resale price maintenance

E) exclusive dealing

27) ________ is an agreement between a manufacturer and a distributor on the price at which a product will be resold.

A) Resale price maintenance

B) Price discrimination

C) Price fixing

D) Predatory pricing

E) A tying arrangement

28) The manufacturer of perfume enters into an agreement with several distributors about the price at which the distributors can resell the perfume. The distributors who do not agree to the pricing suggestion are not able to sell the perfume. The agreement between manufacturers and distributors is

A) resale price maintenance.

B) an interlocking dealership chain.

C) always inefficient.

D) a tying arrangement.

E) an example of an exclusive deal.

29) Resale price maintenance can be illegal

A) under the Clayton Act.

B) under the Sherman Act.

C) only if the distributors engage in predatory pricing.

D) if distributors tell the manufacturer the maximum price at which they will sell the product.

E) only when it is combined with territorial confinement.

30) Resale price maintenance is efficient if

A) it is used in conjunction with a tying arrangement.

B) the manufacturer does not engage in predatory pricing.

C) retailers charge the lowest price for the product.

D) it enables a manufacturer to induce an efficient standard of service from retailers.

E) it takes the place of an exclusive deal.

31) The Shiny Watch company, a manufacturer of expensive watches, requires all of its retailers to sell its watches for a specific price. Which of the following statements are true?

i.The Shiny Watch company is engaged in predatory pricing.

ii.The Shiny Watch company is definitely violating the law

iii.The Shiny Watch company creates an efficient outcome it its retailers provide an efficient level of service.

A) i, ii and iii.

B) ii only.

C) iii only.

D) i and ii.

E) ii and iii.