Use the Following to Answer Questions: Table: Christie' and Sotheby's

question 185

Multiple Choice

Use the following to answer questions: Table: Christie' and Sotheby's $$\begin{array} { | l | l | l | l | } \hline & & \text { Sotheby's Strategies } \\\hline & & \text { High Commission } & \text { Low Commission } \\\hline \text { Christie's } & \text { High Commission } & \text { \$4 million, \$4 million } & \text { \$2 million, \$6 million } \\\hline \text { Strategies } & \text { Low Commission } & \text { \$6 million, \$2 million } & \text { \$3 million, \$3 million } \\\hline\end{array}$$
-(Table: Christie' and Sotheby's) Each cell of this table presents the revenues earned by the auction houses, Christie's and Sotheby's. Revenues are based on the type of commission each firm charges its clients, as well as what commission the other charges. Christie's revenues are listed first in each cell, then Sotheby's. If both firms cooperate and act like a cartel:

• A) both Christie's and Sotheby's will charge a high commission.
• B) both Christie's and Sotheby's will charge a low commission.
• C) Christie's will charge a high commission and Sotheby's will charge a low commission.
• D) Christie's will charge a low commission and Sotheby's will charge a high commission.

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Definitions:

Hospital Of Saint Mary Of Bethlehem

Originally a psychiatric hospital in London, known historically for its association with the treatment of mental illnesses.

Deplorable Conditions

Conditions that are very bad, miserable, or appalling in nature, often in reference to living situations or environments.

Bedlam

A scene of uproar and confusion; historically referring to the Bethlem Royal Hospital, a London psychiatric institution known for its chaotic conditions.

Operant Conditioning

A type of learning where behavior is controlled through consequences, including reinforcement which encourages behavior and punishment which discourages it.