One Problem with Requiring Firms to List Their Prices in Advance

question 20

Multiple Choice

One problem with requiring firms to list their prices in advance is:

• A)it will lead to an increase in competition
• B)it can make it easier for firms to collude
• C)it reduces the amount of searching customers need to do, limiting the effectiveness of competition
• D)firms do not necessarily know their prices in advance

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Definitions:

Proportional Representation

An electoral system in which parties gain seats in proportion to the number of votes cast for them.

Ladies' Association

A historical group or organization formed by women, often focused on social, charitable, or political causes.

Joseph Brant

A prominent Mohawk military and political leader in the 18th century who was closely associated with Great Britain during the American Revolutionary War.

Hessians

German mercenary soldiers hired by the British Crown to fight against the American colonial forces during the Revolutionary War.