In 1982 the CEO of American Airlines spoke on the telephone to the CEO of Braniff Airlines. The CEO of American Airlines proposed that the two airlines fix prices. The CEO of Braniff Airlines rejected the proposal. The CEO of American Airlines:
A) was within his 1st Amendment right to free speech.
B) was in violation of the antitrust laws which prohibit price fixing.
C) was in violation of the antitrust laws which prohibit predatory pricing.
D) Both B and C are correct.
E) None of the above is necessarily correct.
E
Economics
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The relationship between MC and AC can best be described as
A) when AC increases, MC starts to increase. B) when MC increases, AC starts to increase. C) when MC decreases, AC decreases. D) when MC exceeds AC, AC increases.
Economics
The long run, the price charged by a monopolistically competitive firm seeking to maximize profit will:
A. be less than both MC and ATC. B. exceed ATC but equal MC. C. exceed MC but equal ATC. D. exceed both MC and ATC.
Economics