Suppose That Two Soft Drink Manufacturers, Fizzy Pop and Spritzy

question 111

Multiple Choice

Suppose that two soft drink manufacturers, Fizzy Pop and Spritzy Soda, agree to charge the same prices for their soft drinks. This practice is

• A) always legal under the antitrust laws.
• B) legal as long as Herfindahl-Hirschman index is less than 1,000.
• C) legal as long as the firms had a cost justification for setting prices.
• D) always illegal under the antitrust laws.

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Definitions:

Organizational Culture

A group of unified values, aspirations, attitudes, and rituals that distinguish an institution or organization.

Ethical Behavior

Conduct that is consistent with principles of morality and rules of proper conduct.

Encourages Ethical

The act of promoting moral principles and values in decision-making processes.

Organization Culture

The set of shared beliefs, values, norms, and practices that characterizes an organization, influencing how employees interact and work.