Bid-rigging has all of these features EXCEPT
a. It is a collusive agreement
b. The bid-riggers pay a smaller amount than without bid-rigging
c. Bid-riggers need an auxiliary mechanism to allocate the good within the bid-riggers
d. Bid rigging is usually a legitimate and legal strategy for the buyer-side
d
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A minimum wage that is above the equilibrium wage rate
A) increases efficiency within the labor market. B) increases the quantity of labor demanded. C) creates a deadweight loss. D) has no effect on the labor market because it is set above the equilibrium wage rate. E) None of the above answers is correct.
Assume you pay a premium of $0.50/bu for a put option with a strike price of $4.00/bu and that the current futures price is $4.25/bu. Then, the option is:
A. In-the-money B. At-the-money C. Out-of-the-money D. None of the above