For a time, either R. J. Reynolds or Phillip Morris raised prices ...

[burchfield96]

For a time, either R. J. Reynolds or Phillip Morris raised prices of cigarettes twice a year by about 50 cents per carton. The other firms in the industry raised their prices by the same amount. Economists call this: a price war.
 a. predatory pricing.
 b. a price war.
 c. price leadership.
 d. producer sovereignty.

Question 2

Insurers reduce the problem of moral hazard by limiting coverage of open-ended treatments like psychotherapy or fully elective treatments like some cosmetic surgeries.
  Indicate whether the statement is true or false

[recede]

Answer to Question 1

c

Answer to Question 2

T

[burchfield96]

Excellent

[bulacsom]

TYSM