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Firms a and B Are Competitors and Agree to Charge

Question 28

Multiple Choice

Firms A and B are competitors and agree to charge $100.00 for their products. Firms C and D are also competitors in a different market and agree that neither will charge less than $80.00 for its product. The pricing decisions of Firms A and B:


A) and C and D are perfectly legal.
B) and C and D are per se violations of the antitrust laws.
C) and C and D are subject to a Rule of Reason interpretation when determining if they are anticompetitive.
D) are per se violations of the antitrust laws, but the pricing decisions of Firms C and D are subject to the Rule of Reason.

Correct Answer:

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