WGU; C200; Global Economics; Chapter
11 Question and answers correctly
solved
Beyond the enforcement of antitrust laws, collusion often fails because:
a. collusion is inherently wrong and unethical.
b. colluding parties refuse to accept lower profits.
c. it has incentive problems associated with the "prisoners' dilemma."
d. colluding parties do not like each other. - correct answer ✔it has incentive
problems associated with the "prisoners' dilemma."
Which of the following are example(s) of explicit collusion?
a. Signaling to competitors to reduce output.
b. Directly negotiating an agreement to fix prices.
c. Creating a cartel.
d. Creating a cartel and directly negotiating an agreement to fix prices. -
correct answer ✔Creating a cartel and directly negotiating an agreement to
fix prices.
Price setting by a monopolist at a level higher than the competitive price level
is:
a. fair pricing.
b. predatory pricing.
c. collusive price setting.
d. dumping. - correct answer ✔collusive price setting.
Which of the following is a type of attack?
, a. Advertising campaign
b. Price reduction
c. All of these
d. New product introduction - correct answer ✔All of these
Facing strong competition from MNE cosmetics firms, an Israeli firm focused
on products with unique components extracted from the Dead Sea that
couldn't be found in other parts of the world. This is an example of:
a. contender strategy.
b. extender strategy.
c. defender strategy.
d. dodger strategy. - correct answer ✔defender strategy.
Which of the following industry characteristic makes collusion difficult?
a. Few firms
b. Low entry barriers
c. High concentration
d. Homogeneous products - correct answer ✔Low entry barriers
Which of the following statement(s) about dumping are correct?
a. Exporter plans to raises prices after eliminating local competitors.
b. Exporter sells below cost abroad.
c. Exporter colludes with local companies to set prices higher than competitive
level.
d. Exporter sells below cost abroad and exporter plans to raises prices after
eliminating local competitors. - correct answer ✔Exporter sells below cost
abroad and exporter plans to raises prices after eliminating local competitors.
11 Question and answers correctly
solved
Beyond the enforcement of antitrust laws, collusion often fails because:
a. collusion is inherently wrong and unethical.
b. colluding parties refuse to accept lower profits.
c. it has incentive problems associated with the "prisoners' dilemma."
d. colluding parties do not like each other. - correct answer ✔it has incentive
problems associated with the "prisoners' dilemma."
Which of the following are example(s) of explicit collusion?
a. Signaling to competitors to reduce output.
b. Directly negotiating an agreement to fix prices.
c. Creating a cartel.
d. Creating a cartel and directly negotiating an agreement to fix prices. -
correct answer ✔Creating a cartel and directly negotiating an agreement to
fix prices.
Price setting by a monopolist at a level higher than the competitive price level
is:
a. fair pricing.
b. predatory pricing.
c. collusive price setting.
d. dumping. - correct answer ✔collusive price setting.
Which of the following is a type of attack?
, a. Advertising campaign
b. Price reduction
c. All of these
d. New product introduction - correct answer ✔All of these
Facing strong competition from MNE cosmetics firms, an Israeli firm focused
on products with unique components extracted from the Dead Sea that
couldn't be found in other parts of the world. This is an example of:
a. contender strategy.
b. extender strategy.
c. defender strategy.
d. dodger strategy. - correct answer ✔defender strategy.
Which of the following industry characteristic makes collusion difficult?
a. Few firms
b. Low entry barriers
c. High concentration
d. Homogeneous products - correct answer ✔Low entry barriers
Which of the following statement(s) about dumping are correct?
a. Exporter plans to raises prices after eliminating local competitors.
b. Exporter sells below cost abroad.
c. Exporter colludes with local companies to set prices higher than competitive
level.
d. Exporter sells below cost abroad and exporter plans to raises prices after
eliminating local competitors. - correct answer ✔Exporter sells below cost
abroad and exporter plans to raises prices after eliminating local competitors.
