NEWS WIRE: PRICE-FIXING Tuna Firms Guilty of Price-Fixing Washington, DC-The Justice Department says that the three largest suppliers of canned tuna conspired to fix prices from at least November 2010 to December 2013. U.S. consumption of tuna has been declining since the 1990s, in part due to alerts about mercury poisoning. To make up for the declining sales, Bumble Bee, Starkist, and Chicken of the Sea executives met regularly and agreed to protect profits with higher prices. They reduced can size from 6 ounces to 5 ounces, raising the price per ounce. And they agreed to cut back on promotional discounts. Bumble Bee pled guilty to the conspiracy charges in May 2017 and agreed to pay a fine of at least $25 million. Chicken of the Sea confessed and was given amnesty for cooperating with Justice Department investigators. Four executives of the companies pled guilty earlier this year, and the CEO of Bumble Bee was indicted in May. Source: News accounts of September 2018. If a can of tuna sells for $2.60, how much did the price per ounce go up when the tuna companies reduced can size? Instructions: Round your response to the nearest whole number. The price per ounce increased by percent

NEWS WIRE: PRICE-FIXING Tuna Firms Guilty of Price-Fixing Washington, DC-The Justice Department says that the three largest suppliers of canned tuna conspired to fix prices from at least November 2010 to December 2013. U.S. consumption of tuna has been declining since the 1990s, in part due to alerts about mercury poisoning. To make up for the declining sales, Bumble Bee, Starkist, and Chicken of the Sea executives met regularly and agreed to protect profits with higher prices. They reduced can size from 6 ounces to 5 ounces, raising the price per ounce. And they agreed to cut back on promotional discounts. Bumble Bee pled guilty to the conspiracy charges in May 2017 and agreed to pay a fine of at least $25 million. Chicken of the Sea confessed and was given amnesty for cooperating with Justice Department investigators. Four executives of the companies pled guilty earlier this year, and the CEO of Bumble Bee was indicted in May. Source: News accounts of September 2018. If a can of tuna sells for $2.60, how much did the price per ounce go up when the tuna companies reduced can size? Instructions: Round your response to the nearest whole number. The price per ounce increased by percent

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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