If price fixing by competitors is necessary because without it a firm will go bankrupt, is the price fixing legal?
What will be an ideal response?
No, price fixing by competitors is always illegal. Regardless of whether a firm will go bankrupt or not, this sort of price fixing is illegal.
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The value of a country's exports during a particular year was $120,000 and the value of its imports was $85,000. Which of the following is true?
A) The country ran a fiscal deficit of $205,000 during that year. B) The country ran a trade surplus of $35,000 during that year. C) The country ran a budget surplus of $205,000 during that year. D) The country ran a trade deficit of $35,000 during that year.
Suppose firms in a perfectly competitive industry are making economic profits. As a result I. new firms enter the industry. II. the market price falls. III. the economic profits of the existing firms decrease
A) I, II and III B) I and II C) II and III D) I and III