The Figure Below Shows the Result of a Price Fixing

question 39

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,producers will lose $__________ of producer surplus.

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

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, naturally established in a free market.

Organizational Culture

The set of shared values, beliefs, and norms that influence the behavior and attitudes of individuals within an organization.

Inclusion And Respect

Concepts that involve valuing and leveraging differences among individuals in an organization or community to create a welcoming and equitable environment.

Exclusion And Disrespect

The act of deliberately omitting or showing a lack of respect towards others, often leading to feelings of alienation and undervaluation.