An Auto Company Produces Cars at Los Angeles and Detroit

question 83

Essay

An auto company produces cars at Los Angeles and Detroit, and has a warehouse in Atlanta. The company supplies cars to dealers in Dallas and Orlando. The costs of shipping a car between various points are shown in the table below, where "NA" means that a shipment is not allowed. Los Angeles can produce up to 1400 cars, and Detroit can produce up to 3200 cars. Dallas must receive 2800 cars, and Orlando must receive 1800 cars.
-(A) Determine how to minimize the cost of meeting demands at Dallas and Orlando.
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(B) Modify the answer to (A) if shipments between Los Angeles and Detroit are not allowed.

Grasp the consequences of antitrust violations under the Sherman Act, including damages and penalties.

Analyze the legality of various business practices under antitrust laws, such as price-fixing, exclusive dealing, and tying agreements.

Understand the role of market structure, particularly oligopolies, in antitrust analysis.

Apply the rule of reason and per se analysis to evaluate business practices under the Sherman Act.

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Definitions:

Cognitive development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding across the lifespan.

Explicit memory

The type of memory involving the conscious recollection of factual information, previous experiences, and concepts.

Implicit memory

A type of long-term memory that enables people to perform tasks without conscious awareness of these previous experiences.

Memory for single items

The cognitive ability to recall and recognize individual pieces of information or singular objects.