Assume a Monopolist Regularly Posts Price Increases Three Months in Advance

question 84

True/False

Assume a monopolist regularly posts price increases three months in advance of when they will take effect.After a small number of new firms enter the market,the original firm continues the practice of announcing price increases in advance.Following the court's logic in the Ethyl case,the firms in this market would not be guilty of price fixing behavior.

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Definitions:

Extracellular

Pertaining to being outside the cell membrane.

Plasma Membrane

A biological membrane that separates the interior of all cells from the outside environment, controlling the movement of substances in and out of cells.

Permeable

A characteristic of materials that are able to allow liquids or gases to pass through them, especially through pores or interstices.

Gray Matter

The darker-colored area of the central nervous system; abundant in nerve cell bodies, dendrites, and axon terminals, associated with processing and cognition.