When is price fixing not a violation of the antitrust laws? ...

[Sportsfan2111]

When is price fixing not a violation of the antitrust laws?
 
  What will be an ideal response?

Question 2

Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S1 (point C).
 
  If the price of motorcycle side cars (a complement to motorcycles) decreases, and the wages of motorcycle workers increase, how will the equilibrium point change?
  A) The equilibrium point will move from C to E.
  B) The equilibrium point will move from C to B.
  C) The equilibrium will first move from C to A, then return to C.
  D) The equilibrium point will move from C to A.

[covalentbond]

Answer to Question 1

Price fixing among competitors always is a violation of antitrust law, whether or not the act was found to be harmful to consumers. If the Justice Department can prove the existence of price fixing, a defendant can offer no acceptable excuse. Price fixing between a supplier and a reseller is not illegal as long as it is not anticompetitive.

Answer to Question 2

B

[Sportsfan2111]

Thank you

[covalentbond]

No problemo