Collusive pricing - Study guides, Class notes & Summaries

ECON 705 Module 6.2 Quiz and Solutions 1. Oligopolies are characterized by Select one: a. a small number of large firms, each making independent decisions about own price and output. c. a large number of firms with no individual control over the market price. d. a large number of small firms, each acting independently in setting price and quantity. 2. Game theory is the branch of economics that studies Select one: b. how large firms grow and merge to become monopolies. ...

MSCA Chapters 13, 14, 20, Questions & ANSWERS, RATED A+ Collusive pricing - -This occurs when companies in an industry conspire in their pricing and production decisions to achieve a price above a competitive price and, therefore, restrains trade. Committed costs - -is a cost that a business entity has incurred and cannot change or an obligations already made that the business cannot get out of. Typically a longer time frame of a year or more & not easily changed Examples: rent, leasi...

FMGT 4210 CHAPTER 12 COMPLETE QUESTIONS AND ANSWERS Target Pricing - CORRECT ANSWER-Where the price is based on what customers are willing to pay. Cost-plus Pricing - CORRECT ANSWER-Where a flat rate target profit percentage is added to the full product cost. Life-cycle Pricing - CORRECT ANSWER-Where the price includes the environmental costs of production, reclamation, recycling, and reuse of materials. Locked-in Costs - CORRECT ANSWER-Costs that have not yet been incurred but, ...

Irene's Dairy is deciding whether or not to enter the market for ice cream, currently monopolized by Mattie's Ice Cream. If it enters the market, Mattie's can either accommodate him and share his 10 million in profits equally with Irene or fight him and cause a 5 million loss for each in a price war. If Mattie wants to discourage Irene from entering the market, what strategy should she follow? a. Threaten to always accommodate b. Always accommodate c. Threaten to always fight d. All ...

Base of the pyramid (BOP) - Answer Economies where people make less than $2,000 per capita per year. BRICA - Answer Brazil, Russia, India, and China. Emerging economies - Answer term that has gradually replaced the term "developing countries" since the 1990s. Emerging markets - Answer A term that is often used interchangeably with "emerging economies." Expatriate manager - Answer A manager who works abroad, or "expat" for short. Foreign direct investment (FDI) - Answer Inves...

Foreign direct investment (FDI) is: - ANSWER investment in activities that control and manage value-added activities in foreign countries. Foreign portfolio investment (FPI) is: - ANSWER investment in foreign stocks and bonds that do not involve the active management of foreign assets. Which of the following are examples of ownership, location, and internalization (OLI) advantages? - ANSWER Possession of valuable foreign assets Unique natural resources that provide advantages to the firm...

A priori probability - Answer- A probability based on logical analysis rather than on observation or personal judgment. abnormal return - Answer- The amount by which a security's actual return differs from its expected return, given the security's risk and the market's return. absolute advantage - Answer- A country's ability to produce a good or service at a lower absolute cost than its trading partner. Absolute dispersion - Answer- The amount of variability present without comparis...

Which one of the following functional areas of Keithly can assist Alex with this audit's irregularity? - Answer- Special Investigation Unit Which one of the following best describes a FAIR plan and its insureds? - Answer- State-run plans with cost spread among private insurers in the state Which one of the following departments provides information to the underwriting department to assist in selecting and rating risks? - Answer- Risk control All corporations are obligated to promote th...

Absolute Advantage - Answer The economic advantage one nation enjoys that is absolutely superior to other nations. Accounting Profit - Answer Total revenue minus total explicit cost Acquisition - Answer a wholly owned subsidiary is created through direct foreign investment. Administrative Policy - Answer Bureaucratic rules that make it harder to import foreign goods. Agglomeration - Answer Clustering of economic activities in certain locations. Beyond geographic advantages, location-...

CFA Level 1 Economics 241 Questions with Answers 2023 Price Elasticity of Demand Formula - CORRECT ANSWER (% Change in Quantity Demanded) / (%t Change in Price) Cross Elasticity of Demand Formula - CORRECT ANSWER (% Change in Quantity Demanded) / (% Change in Price of Substitute or Complement) Income Elasticity of Demand Formula - CORRECT ANSWER (% Change in Quantity Demanded) / (% Change in Income) Price Elasticity of Supply Formula - CORRECT ANSWER (% Change in Quantity Supplied)...