Doreen and Al Are Sales Reps for Competing Product Lines

question 80

Multiple Choice

Doreen and Al are sales reps for competing product lines of school desks in the same state. They run into each other at the Expo Hall for a state convention of high school principals and other education administrators. During a slow period in the Expo Hall, Doreen and Al talk about their upcoming sales pitches a various schools. They discover that they are both pitching to the same schools. Al proposes the following to Doreen, "Why don't you take Winterbury Elementary and I will take Red Stone Middle School?   Just submit a higher bid on Red Stone and I will submit a high bid on Winterbury. That way we both get one contract each." Which of the following statements is correct?

• A) As long as they both bid, there is no problem with their agreement.
• B) As long as they do not mention their prices to each other, there is no problem with their agreement.
• C) This arrangement is a violation of antitrust laws.
• D) Throwing a bid is not an antitrust violation; it is their decision.

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Definitions:

New Features

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iPads

A line of tablet computers designed, developed, and marketed by Apple Inc., which run the iOS and iPadOS mobile operating systems.

Total Utility

The complete satisfaction obtained from consuming a certain quantity of goods or services.

Marginal Utility

The additional satisfaction or benefit (utility) a consumer gains from consuming one more unit of a good or service.