Author Question: For a time, either R. J. Reynolds or Phillip Morris raised prices of cigarettes twice a year by ... (Read 17 times)

burchfield96 · **on:** Jun 30, 2018

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