A firm that holds a monopoly in both goods stands to gain from a tie-in sale
A) True.
B) False.
C) True, which is why anti-trust laws exist.
D) False, there are no dual monopolies.
B
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Cigarettes served as money in some POW camps during World War II. Given this fact, we would expect to observe
A) no one ever smoking a cigarette. B) people usually resorting to barter rather than using cigarettes as money. C) prices of other goods expressed in terms of cigarettes. D) only government-issued cigarettes being accepted as money.
As short-term interest rates began to rise in 2005, which one of the following mortgage loan categories experienced the largest increase in default and foreclosure rates?
a. fixed rate mortgages to prime borrowers b. fixed rate mortgages to sub-prime borrowers c. adjustable rate mortgages extended to both prime and sub-prime borrowers d. adjustable rate mortgages to sub-prime borrowers only; the default and foreclosure rates of these loans extended to prime borrowers declined
The strategy underlying price discrimination is to:
A. charge higher prices to customers who have better access to substitutes. B. charge everyone the same price but limit the quantity they are allowed to buy. C. increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand. D. reduce per-unit costs by charging higher prices to those with the most elastic demand and lower prices to those with the most inelastic demand.
If you are a sole proprietor of a firm and you do not pay yourself a regular wage, then the value of the wage you could have earned elsewhere is
A. an explicit cost. B. an accounting cost. C. an implicit cost. D. not a cost.