Federal Legislation on Price Fixing Requires That Sellers Set Their

question 12

Multiple Choice

Federal legislation on price fixing requires that sellers set their prices .

• A)based on their fixed and variable costs
• B)to achieve a specific profit margin
• C)without the intention of cutting into competitors' profits
• D)without communication from competitors
• E)consistently throughout a region

---

Definitions:

Bureaucratic Inertia

The tendency of bureaucratic organizations to resist change and maintain the status quo due to their complex structures and rules.

Bureaucracies

are complex organizational structures designed to manage and administer the policies, rules, and regulations of larger institutions or governments through a hierarchical system of authority.

Authority Structures

Refer to the systems and frameworks through which power and authority are organized, distributed, and executed within a society or organization.

Democratic Leadership

Offers more guidance than the laissez-faire variety but less control than the authoritarian type. Democratic leaders try to include all group members in the decision-making process, taking the best ideas from the group and molding them into a strategy with which all can identify. Outside of crisis situations, democratic leadership is usually the most effective leadership style.