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:

Economic Interests

Economic interests refer to the financial stakes or investments individuals or entities have in certain outcomes or entities, influencing their decisions and actions.

Intentional Torts

Legal wrongs resulting from actions taken deliberately, intending to cause harm to another person, such as assault or defamation.

Comparative Negligence

A legal principle where damages are apportioned according to the degree of fault of each party in a lawsuit involving negligence.

Contributory Negligence

A defense to negligence whereby the defendant can escape all liability by proving that the plaintiff failed to act in a way that would protect him or her from an unreasonable risk of harm and that the plaintiff’s negligent behavior contributed in some way to the plaintiff’s accident.