A Group of Manufacturers of LCD Screens for Computers and Cell

question 123

Multiple Choice

A group of manufacturers of LCD screens for computers and cell phones met together monthly in private conference rooms in hotels to discuss their markets and kept notes with phrases such as "Must act together with the Korean makers in order to reap success," and "Extremely confidential.Must not distribute." The result was that the LCD screen producers were able to command high prices for their products,prices that were non-negotiable.Which of the following statements is correct about their conduct?​

• A)​The manufacturers had engaged in a per se violation of antitrust laws.
• B)​The manufacturers violated the Sherman Act.
• C)The manufacturers violated the Clayton Act.
• D)both a and b
• E)all of the above

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Definitions:

Perfect Substitutes

are goods that can be completely exchanged for one another at a constant rate of substitution and possess identical levels of utility and functionality for consumers.

Substitution Effect

An alteration in consumer choice between two goods when the price of one good changes relative to the price of another, influencing the allocation of their budget.

Income Effect

The relationship between changing income in a person's life or the economy and the subsequent demand for certain goods or services.

Perfect Substitutes

Goods for which consumers are willing to replace one for the other at a constant rate, without affecting their level of utility.