Vertical relationships can increase profits through
a. preventing firms from evading regulation
b. creating a double-markup problem
c. better aligning the incentives of manufacturers and retailers
d. preventing price discrimination
c
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"It is impossible to represent a three variable relationship in a two-dimensional graph." Is this statement true or false? Explain your answer
What will be an ideal response?
In deciding whether to operate in the short run, the firm must be concerned with the relationship between price of the output and
A) total cost. B) average variable cost. C) total fixed cost. D) the number of buyers.
A profit-maximizing firm will only produce a positive amount of output if:
A. its total revenue is greater than or equal to its variable cost. B. its total revenue equals its total cost. C. its total revenue is greater than its fixed cost. D. its total revenue is greater than its total cost.
Which of the following would best describe the demand curve faced by a monopoly firm?
A) horizontal line at the market price B) vertical line at the output level C) same as the market demand curve D) same as the perfect competitor's demand curve