Dumping refers to selling a product abroad at higher prices than the product is sold domestically
Indicate whether the statement is true or false
False
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A few years ago Netflix (N) pioneered an online DVD rental service. Blockbuster (B), a brick and mortar DVD/video rental company, waited until Netflix had been in business for over a year before deciding whether to establish its own online rental service. At this point, Netflix had to decide whether or not to lower its subscription price in order to deter Blockbuster's entry into the market. Figure 14-1 shows the decision tree for the Netflix-Blockbuster entry game.
Refer to Figure 14-1. If Netflix lowers its price will this deter Blockbuster from setting up an online DVD rental service?
BioMed Pharmaceutical has held a patent on an important heart medication called Heartex, but the patent will expire in the coming year. After the patent expires, other firms can legally sell the same medication as a generic drug product
What will happens to the demand for Heartex and to the Lerner index for this product as the generic drugs enter the market? A) Demand becomes less elastic, Lerner index increases B) Demand becomes less elastic, Lerner index declines C) Demand becomes more elastic, Lerner index increases D) Demand becomes more elastic, Lerner index declines
An increase in tax rates on a product will raise more revenue, the more inelastic is the demand curve
a. True b. False Indicate whether the statement is true or false
Game theory shows that cartels
a) should be expected b) allow firms to maximize joint profit c) allow firms to overcome the less desired outcome consider with the person's dilemma d) all of the above