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 large
c. the manufacturer acquires the distributer in the lower priced market
d. competition provides little ability for the manufacturer to price above marginal cost
c
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Using average price and average quantity, calculate the price elasticity of demand if a price rise from $8 to $10 and decreases the quantity demanded from 20 units to 15 units. The price elasticity of demand equals
A) 2.5. B) 1.29. C) 0.78. D) 0.06
Between 1990 and 2014, which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?
A) Japan B) Canada C) the United States D) Germany
What would be the likely result of a recessionary gap? If this leads to a fall in the nominal wage what impact it would have on the aggregate supply curve and on recessionary gap?
What will be an ideal response?
The Federal Reserve changes the risk-free interest rate most directly:
A. by changing the reserve requirement. B. by changing the federal funds rate. C. by changing the discount rate. D. with open-market operations.