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What occurs when two or more businesses secretly agree to set their prices artificially high and agree not to lower them?
When two or more businesses secretly agree to set their prices artificially high and not lower them, it constitutes price fixing, which is a form of anti-competitive behavior. This practice undermines free market competition, leading to increased prices for consumers and reduced choices. Such agreements are illegal in many jurisdictions, as they violate antitrust laws designed to promote fair competition and protect consumers. Companies found guilty of price fixing may face significant fines and legal penalties.
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What tariff type is used to protect a domestic industry?
A PROTECTIVE tariff is intended to artificially inflate prices of imports and protect domestic industries from foreign competition.
How wouldthe british dumping ameican hurt business?
British dumping of goods in the American market could significantly hurt local businesses by creating an uneven playing field. When British products are sold at artificially low prices, American manufacturers may struggle to compete, leading to decreased sales and potential layoffs. This could ultimately result in a loss of jobs and economic instability in affected industries. Additionally, it might prompt calls for protective tariffs or trade regulations to level the competitive landscape.
What effect did Tycoons have on the Industrial Revolution?
Monopolized smaller businesses and then used their power to inflate prices on their goods that were now widely available to others. Led to construction of railroads and large cities of steel.
Why have African nations had trouble feeding their people?
Land used for export crops could not be used to produce food crops. As a result, countries that had once been able to feed their own people now had to import food. This as costly, meanwhile, many goverments kept food prices artificially low. Low prices discouraged local farmers from growing food crops. Governments then had to subsidize parts of the cost of importing food from overseas.
How did the 2008 stock market crash occur?
The stock market crashed when the US gov't over-printed currency, thus starting inflation. From there, money was worth less and less which caused the prices on everything, including oil, to rise. as money was worth less, businesses began to close and banks had to be bailed out of bankruptcy with OUR taxpayer's billions. this caused stocks in businesses or corporations to plunge. it sounds like the end of the world, but really, it is not.
What occurs when two or more businesses secretly agree to set their prices artificially high and agree not to lower them which forces consumers to pay more than they would if no agreement existed?
price fixing
When does collusion between two firms occur?
Collusion between two firms occurs when they secretly work together to manipulate the market in their favor, such as by fixing prices or limiting competition.
The common definition of price fixing is?
When companies agree to set prices artificially high.
Over what range of prices does shortage arise?
A shortage arises when the market price of a good or service is set below the equilibrium price, leading to higher demand than supply. This typically occurs when prices are artificially lowered through price controls or regulations. In this case, the quantity demanded exceeds the quantity supplied, resulting in a shortage. The specific range of prices where this occurs varies by market and depends on the equilibrium price determined by supply and demand dynamics.
Why Large businesses depends on small businesses?
Large businesses depend on small businesses to have higher prices and force customers to them. In addition, small businesses often order from larger businesses.
How did a cartel control prices?
Businesses agreed to limit production.
How did cartel control prices?
Businesses agreed to limit production.
What did the Supreme Court case of Munn v Illinois permit the government to do?
it allowed the government to set prices over some private businesses (apex)
Harshad Mehta's scam?
In 1992 he exploited some loopholes in India that allowed him to artificially drive stock prices up on the Bombay exchange.
What is extortionist tourism?
Businesses abusing tourists with extremely high prices.
What is it called when Businesses are raising prices on goods that are scarce?
Price Gouging
When inflation occurs do prices fall or rise?
rise
