Article is at the end of the module on antitrust policy

Article is at the end of the module on antitrust policy

Business Economics

Several questions in this problem set are based on the 8/19/12 Wall Street Journal article “Cartel Pushes Up Price of Rubber.” This article is at the end of the module on Antitrust Policy. Try to read the entire article carefully first… and then see if you can answer the questions (rather than fishing out the answer each time). Obviously you will go back and check to make sure you have it correct … but to absorb the content it is best read it all first before going back.

In what ways is TopGlove responding?

1. They are on the verge of bankruptcy and are looking for buyers.
2. Stopping production of rubber-based products and diversifying into plastics.
3. Raising prices to consumers and investing in its own rubber plantation
4. Keeping prices constant (which means lower profits) so as to not lose consumers