If Japanese Producers Sell Computer Chips at a Higher Price

question 323

Multiple Choice

If Japanese producers sell computer chips at a higher price in the United States than in Japan, and if there is no cost difference in producing or transporting the chips, the Japanese producers would be practicing

• A) cartel pricing.
• B) price discrimination.
• C) simple monopoly behavior.
• D) price sampling.

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Definitions:

Efficiency

The ability to achieve a desired result or work output with minimum wasted effort or expense.

Equity

A measure of ownership in a company or asset, typically represented by shares that entitle holders to a proportion of the company's profits.

Voluntary Exchange

A transaction where two parties mutually agree to trade goods, services, or resources, typically to the perceived benefit of both.

Marginal Rate

The rate of change in cost, output, or benefit as a result of a one-unit increase in an input.