The Figure Below Shows the Result of a Price Fixing

question 45

Multiple Choice

The figure below shows the result of a price fixing scheme that raised price above competitive levels at point C to a price of $15 at point M. When antitrust enforcement agents break up this price-fixing cartel,consumers will gain $__________ of consumer surplus.

• A)$5,000
• B)$15,000
• C)$20,000
• D)$31,250

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Definitions:

Shareholder's Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership stake of shareholders.

NCI

Non-controlling interest, which represents the portion of a subsidiary not owned by the parent company, showing up in the consolidated financial statement.

Consolidation Adjusting Entries

Journal entries made in the process of preparing consolidated financial statements to eliminate intercompany transactions and balances.