Under What Conditions Would It Be Legal for Two Bakeries

question 194

Multiple Choice

Under what conditions would it be legal for two bakeries in Minneapolis to explicitly agree to raise their prices by 5 percent?

• A) if the price rise was not predatory
• B) if the price rise did not measurably increase producer surplus
• C) never
• D) if the price rise did not harm consumers in the long run by reducing competition
• E) if the price rise was necessary to keep one or both bakeries from closing.

---

Definitions:

Courtesy

The demonstration of politeness, respect, and consideration for others.

Turnover

The rate at which employees leave an organization and are replaced by new employees, affecting the stability and continuity of the business.

Shocks

Unexpected or sudden events that disrupt or change the status quo, often necessitating swift adaptation or response.

Turnover

The rate at which employees leave a company and are replaced by new ones, affecting stability and continuity.