Which of the following is NOT a potential objective of tying strategies used by firms?
A) Reduce production costs and avoid problems associated with diseconomies of scale
B) Protect brand image and ensure product quality
C) Meter consumption across different buyers in order to collect a two-part tariff
D) Extend a firm's market power from one product market into another market
A
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A tool for managing interest-rate risk that requires exchange of payment streams is a
A) futures contract. B) forward contract. C) swap. D) micro hedge.
Social Security Income (SSI) is available for all, except
A. aged. B. immigrants. C. blind. D. disabled.
In a sense, a cartel is self-destructive because
A) it reduces consumer surplus. B) it sets price above marginal cost. C) each cartel member has the incentive to cheat on the cartel. D) each cartel member earns economic profit.
A firm whose price is below its average cost:
a. is earning negative economic profit. b. is earning positive economic profit. c. is just breaking even. d. is earning zero economic profit. e. is earning zero accounting profit.