Answer: No,the company is not guilty.
Explanation: In the given case, Hines could not be considered guilty of price discrimination as the price charged from different shops was same. The free samples were distributed for the purpose of campaign and the discretion to which shop they want to provide lies completely with the company.
Price discrimination refers to the practice of charging different prices from different customer which the company have definitely not done.
Hence, Hines could not be charged of guilty of price discrimination.
Answer:
b. an economic profit of 100%.
Explanation:
A monopoly is when there is only one firm operating in the industry. There are high barriers to entry of firms in a monopoly. Profit is maximised where MR = MC.
Economic profit is affected by the entry or exit of firms into the industry in the long run. Due to the high barriers to entry, a monopoly earns economic profit in the long run.
I hope my answer helps you
Answer:
price fixing
Explanation:
The collusion occurs when firms agree to collaborate in a way that disrupt markets such as fixing prices above the actual price to alter the equilibrium of the market
Answer:
TRUE
Explanation:
It is true that under the all-events test, in addition to specifying that all events to establish the liability must have occurred, the test also provides that the business must be able to determine the amount of the liability with reasonable accuracy
Under Sec. 461(h), a three-prongall-events test is met when
(1) all events have occurred that establish the fact of the liability;
(2) <u>the amount of the liability can be determined with reasonable accuracy</u>; and
(3) economic performance has occurred.
