question 4\n1 pts\ntwo firms would sometimes be better off if they got together and agreed to charge a high…

question 4\n1 pts\ntwo firms would sometimes be better off if they got together and agreed to charge a high price, rather than to compete and risk having to charge a lower, competitive price. what is the greatest deterrent to this strategy?\nthe firms may find that the price they charge is greater than the price that would maximize their profits.\nconsumers may resent having to pay high prices and not buy from either of the firms.\none of the firms may decide to lower its price and take business away from the firm that charged the high price.\nan agreement by firms to charge high prices is illegal. the government can fine the firms and send their managers to jail.\nquestion 5\n1 pts\nthe debeers company of south africa was able to block competition through\n economies of scale.\n ownership of an essential input.\n differentiating its product.\n government - imposed barriers.

question 4\n1 pts\ntwo firms would sometimes be better off if they got together and agreed to charge a high price, rather than to compete and risk having to charge a lower, competitive price. what is the greatest deterrent to this strategy?\nthe firms may find that the price they charge is greater than the price that would maximize their profits.\nconsumers may resent having to pay high prices and not buy from either of the firms.\none of the firms may decide to lower its price and take business away from the firm that charged the high price.\nan agreement by firms to charge high prices is illegal. the government can fine the firms and send their managers to jail.\nquestion 5\n1 pts\nthe debeers company of south africa was able to block competition through\n economies of scale.\n ownership of an essential input.\n differentiating its product.\n government - imposed barriers.

Answer

Brief Explanations:

For Question 4: Collusion to set high - prices is illegal in many economies to protect competition and consumer welfare. Firms face legal consequences for such behavior. For Question 5: DeBeers controlled diamond mines (an essential input), which allowed it to block competition.

Answer:

Question 4: An agreement by firms to charge high prices is illegal. The government can fine the firms and send their managers to jail. Question 5: ownership of an essential input