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 differences across markets is small
c. the manufacturer acquires the distributer in the higher priced market
d. competition provide little ability for the manufacturer has to price above marginal cost
b
You might also like to view...
Use the figure below to answer the following question.
What is the amount of producer surplus after the government imposes the excise tax on the market?
A. $162 B. $540 C. $486 D. $180
"Good news" about an expenditure-related indicator drives bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
Aggregate demand does not include: a. Purchases of intermediate goods and final goods
b. Purchases of used goods and services. c. Purchases of stocks and bonds. d. Aggregate demand does not include any of the above.
Economist Jones favors a constant-money-growth-rate rule. She says that if the annual money supply growth rate each year is equal to the average annual growth rate in Real GDP, price stability will exist over time. What would economist Smith, who favors activist monetary policy, say to economist Jones?
A) Your analysis assumes that Real GDP is constant over time, and it is not. B) Your analysis assumes that velocity is constant, and it is not. C) Your analysis assumes that you can correctly define the money supply. D) b and c E) a, b and c