The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer
b. the costs of arbitraging the price difference across markets is small
c. the manufacturer acquires the distributer in the higher priced market
d. competition provides little ability for the manufacturer to price above marginal cost
b
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For a person to have a comparative advantage in producing a product, she must be able to produce that product at a lower opportunity cost than her competitors
Indicate whether the statement is true or false
The collapse of one bank might lead easily to the failure of several others, because ________
A) depositors cannot trust each other to keep their money in the bank B) deposit insurance renders all banks equally fragile C) no bank can survive when its competitors cease to operate D) government regulators will step in to punish any bank suspected of poor management
A commodity money standard exists when exchange rates are:
a. artificially pegged to the price of oil. b. fixed in terms of gold, thus creating flexible exchange rates between countries. c. fixed in terms of gold, thus creating fixed exchange rates between countries. d. allowed to fluctuate based on the values of different currencies. e. fixed, based on the values of different currencies, in terms of some commodity.
Assuming prices and wages are fully flexible, the aggregate supply curve will be:
A. upward sloping, but not vertical. B. vertical. C. horizontal. D. downward sloping.