Even if a firm is found guilty of price fixing, after paying all imposed fines, it is still possible for the firm to earn positive economic profit from the price fixing scheme.

Question

Quizplus · Accepted Answer

The firm may still earn positive economic profit from the price fixing scheme because the increased price resulting from the scheme can lead to higher revenue and profits for the firm, even after paying fines. However, this is illegal and unethical behavior and can harm consumers and other competing firms.

Even If a Firm Is Found Guilty of Price Fixing