because left unchecked, large trusts or corporations can control markets and prices in ways that unfairly hurt consumers. Industrial regulation affects markets by limiting business practices of firms and ensuring that ample competition exists. The entities that are most affected by industrial regulation would be natural monopolies and firms considered part of an oligopoly. Firms fitting those descriptions can find their price and production outputs being monitored and controlled by governments or public
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consumer risk 1. When manufacturers and retailers agree to set prices, this is 1. Horizontal price fixing 2. Vertical price fixing 3. Backwards price fixing 4. Lowered price fixing 1. Until was it illegal for a manufacturer and a retailer to fix prices? 1. 1876 2. 1965 3. 1987 4. 2007 1. A seller’s exploitation of a short-term situation in which buyers have few purchase options for a much-needed product is called 1. Price
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what it does in exports. For Example we have a high demand for gasoline within our country. This opens us up to inflation on gasoline prices, and price gouging due to the high demand and consumption of gasoline within this country. Since this type of product is imported into our country we don’t benefit from the sales exporting countries do. What are the effects of international trade to GDP, domestic markets and university students? United States is a huge contributor to the international trade
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officials as the desire for railroads far outstripped the government’s willingness to regulate. The federal government stayed out of the commercial regulation of the railroads until the Interstate Commerce Act of 1887 when railroad price fixing had become so egregious that its effect on other political interests finally compelled Congress to act. (269 Words) 2. Standard Oil was a monopoly on the oil market devised by John D. Rockefeller. The goal of the company was to control all oil and kerosene in
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2/26/2011 CASE ASSIGNMENT 2 Ethics and “Price Gouging” in Florida i) Many months before the “Hurricane Season”, our company will negotiate contracts with suppliers in order to make sure that we have higher inventory levels during the “Hurricane Season” to be able to supply the possible high demand for commodities. This situation will increase our inventory cost during the hurricane season and at the end average total cost. We are taking risk of a higher cost to be able to supply possible
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keeping down cost. According to the New York Times, “Any agreement among competitors with regard to prices or price increases — even if they set a maximum — would raise legal concerns” (Pear, 2006) Anti-trust laws are imperative to keep the market competitive regardless of the type of business one runs. However, especially in terms of medical care it is important that issues, such as price gouging do not take place because of the large number of people who struggle with health care cost. Unfair business
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1. What is the effect of universal health care, where the patients pay a price of zero at the point of service and the doctors get paid by a third party (either the government or the insurance companies). Make sure you address the impact of such a policy on (a) availability of services, (b) the poor patients, and (c) quality of services. Explain all your answers. In doing so, use a Demand/Supply diagram to help with your explanations… at least for (a). When patients pay a price of zero at the
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Group 4 Business Ethics March 16, 2013 Question #1 What steps you would take to change an organization culture? Changing an organization’s culture is one of the toughest tasks to take on. This is so because the organization culture was formed over a period of years with interaction between customers, and employees of the organization. Culture change requires commitment, understanding and tools. These are some steps to take in changing an organization culture:- • Be aware of the
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regulation of firms’ prices or rates within industries. These regulations are in existence to prevent companies from forming a monopoly, to promote competition and achieve allocative efficiency.] (Brue, 2011) In the mid-1800’s industry began to grow and many companies were becoming monopolies by being dominant firms in their industry. They would drive up prices by using questionable tactics. Different businesses and consumers began to complain to the government about the unfairness of prices The government
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business practices whether they be price gouging, monopolization or product misrepresentation; each of these circumstances has caused an uproar from consumers and even federal government agencies are now beginning to investigate these companies for wrong doing. Valeant Pharmaceuticals is the most recent perpetrator of predatory pricing; on February 10, 2015 Valeant purchased the rights to a pair of life saving heart drugs Nitropress and Isurprel, on that same day the price rose 525% and 212% respectively
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