An exclusive dealing contract is a ________ contractual requirement that ________.
A) vertical; forbids the buyer from selling products that compete with the seller's product
B) horizontal; forbids the buyer from selling products that compete with the seller's product
C) horizontal; requires the buyer to purchase 100 percent of the product that it needs from the supplier
D) vertical; requires the buyer to purchase 100 percent of the product that it needs from the supplier
A) vertical; forbids the buyer from selling products that compete with the seller's product
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Define free markets. Does a perfectly competitive market qualify as a free market?
What will be an ideal response?
Economic depreciation is the
A) firm's opportunity cost of using its own capital. B) change in the market value of capital over a given period. C) return that an entrepreneur can expect to receive on average. D) forgone return on the funds used to buy capital.
Assume the United States is the "domestic" country and China is the "foreign" country. Which of the following might increase the real exchange rate between the United States and China?
A) an increase in the price level in the United States B) an appreciation of the yuan C) an increase in the price level of China D) a depreciation of the dollar
Governments often choose to regulate monopolies, rather than break them up into smaller firms, because monopolies often are
a. entitled to economic profits b. very big and politically powerful c. more efficient producers d. providing useful goods and services that would not otherwise be provided e. heavily subsidized