Suppose That Two Soft Drink Manufacturers, Fizzy Pop and Spritzy

question 111

Multiple Choice

Suppose that two soft drink manufacturers, Fizzy Pop and Spritzy Soda, agree to charge the same prices for their soft drinks. This practice is

• A) always legal under the antitrust laws.
• B) legal as long as Herfindahl-Hirschman index is less than 1,000.
• C) legal as long as the firms had a cost justification for setting prices.
• D) always illegal under the antitrust laws.

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Definitions:

Employee Assistance Plans

Programs offered by employers to help employees deal with personal problems that might adversely affect their work performance, health, and well-being.

Referrals

The act of recommending someone for a job or professional service, often based on personal endorsement.

Expenses

Costs incurred by a business or individual in the process of earning revenue, including operational, administrative, and marketing costs, among others.

Compensation Strategy

An approach used by businesses to design and implement payment systems and benefits to employees.