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Why firm might prefer meet-or-release mcc to no-release mcc

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Reference no: EM13874806

1. What are the optimal penal codes if there are two firms, competition is Bertrand, marginal costs are equal, and capacity is unlimited?

2. Explain why a firm might prefer a meet-or-release MCC to a no-release MCC.

3. Why might it be sensible not to have an effects test in determining whether an agreement between firms should be illegal? How does the presence of an effects test, as in Canada, affect the evidence requirements for a price-fixing conviction?

Reference no: EM13874806

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