Which of the Following Actions Should Be Discussed with an Attorney

question 157

Multiple Choice

Which of the following actions should be discussed with an attorney before undertaking as the action could be considered legal?

• A)an agreement with a competitor firm to set prices
• B)an exclusive dealings contract with a customer
• C)an agreement with a competitor firm not to bid on a contract
• D)an agreement with a competitor firm submit a low bid on a contract

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Definitions:

Perfectly Inelastic

A market situation where the quantity demanded or supplied does not change in response to a change in price.

Elasticity of Demand

An indicator of the responsiveness of the quantity of a product demanded to its price alterations.

Total Revenue

The total income a firm receives from the sale of its products, calculated as the price per unit times the number of units sold.

Inelastic

A demand is considered inelastic when it does not significantly change with the price of a good or service, indicating that consumers are relatively insensitive to price changes.