A "Rate Fence" Is a Person Who Purchases a Service

question 44

True/False

A "rate fence" is a person who purchases a service at list price and later sells the service at a premium to another person.This practice is often illegal or restricted as in "scalping" of tickets to a sporting event.

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Definitions:

Long Run

When all costs become variable costs and firms can enter or leave the industry.

Covert Collusion

A secretive agreement among firms to fix prices, limit production, or divide markets, which is illegal and against regulatory policies.

Cut Throat Competition

An intense form of competition where businesses aggressively undercut each other's prices, often at the expense of profit margins.

Cartels

Agreements among competing firms in an industry to control prices, limit production, or divide markets, with the goal of maximizing collective profits.