The Figure Below Shows the Result of a Price Fixing

question 20

Multiple Choice

The figure below shows the result of a price fixing scheme that raised price above competitive levels at point C to a price of $15 at point M. The formation of this cartel caused a deadweight loss to society of $____________ of social surplus.

• A)$5,000
• B)$15,000
• C)$20,000
• D)$31,250

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Definitions:

Cultures

The shared values, beliefs, customs, practices, and social behaviors of a group of people or society.

Global Leaders

Individuals who influence and direct organizations or groups within a global context, understanding diverse cultures and international market dynamics.

Developing Global Leaders

A strategy or process to prepare individuals within an organization to perform effectively in leadership roles within a global context.

High Ethical Standards

Principles that guide behaviors to be morally upright, honest, and showing respect for others.