Which of the following represents monopolistic competitors? Suppose Lana lives i
ID: 1167159 • Letter: W
Question
Which of the following represents monopolistic competitors?
Suppose Lana lives in a small college town where, every weekend, 10 independent food cart owners set up shop and sell hot dogs on the street. They are popular with students, and they frequently locate where students hang out. One evening, Lana overhears the conversation of three of the food cart owners as they conspire to raise the price of their hot dogs. That same night, she reports the conversation to the Department of Justice via their antitrust complaint website. Why might the Department of Justice NOT send an agent to investigate the collusion attempt that Lana witnessed?
Collusion among small competitors like street vendors is actually beneficial to consumers.
Assume that two firms (Firm A and Firm B) operate in the U.S. steel industry. The owner of Firm A writes the following letter to the owner of Firm B:
Dear Owner of Firm B,
I have concluded that if we both restrict output such that we each produce only 3 million tons of steel per year, we can both charge a price that will allow us to effectively monopolize the steel market and to maximize our joint profits. If you would like to enter into this agreement with me, please draft a contract that specifies this agreement, and I will be more than willing to meet with you and sign it.
Sincerely,
Owner of Firm A
If this letter were sent in the year 1850, the owner(s) of
Firm B would be guilty of violating antitrust laws only if he drafted and signed the agreement.
a local gas company and electric company, both servicing residential homes Price MC DI MR QuantityExplanation / Answer
1.rock musicians selling albums recorded with the same producer.
Because in monopolistic competition there are many competitors. In all other answers there are few sellers which does not satisfy the characterstic of monopolistic competition .
2.The Department of Justice lacks the resources to investigate every case of collusion reported.
even though they three raises the price students can reach to other seven sellers.
3.Firm A would be guilty of violating antitrust laws
4.B + D + G + E + H
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.