It is possible that a multi-product monopolist will reduce the quality of a product below what its users prefer in order to make more profit
Indicate whether the statement is true or false
T If the products are substitutes and buyers of a high-quality one will pay a high price for it, the monopolist may want to reduce the quality of the other product so it is less attractive as a substitute for the high-priced product.
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A U.S.-owned automobile factory uses $50 million worth of materials produced in the U.S. and $10 million worth of material purchased from foreign countries to produce $100 million of automobiles. $70 million worth of these automobiles are purchased by
U.S. consumers, $25 million are sold in foreign countries, and $5 million are added to inventory. How much of this production is included in U.S. GDP? By how much do these transactions alone affect U.S. net exports?
Which of the following is correct?
a. Managed funds typically have a higher return than indexed funds. This tends to refute the efficient market hypothesis. b. Managed funds typically have a higher return than indexed funds. This tends to support the efficient market hypothesis. c. Index funds typically have a higher rate of return than managed funds. This tends to refute the efficient market hypothesis. d. Index funds typically have a higher rate of return than managed funds. This tends to support the efficient market hypothesis.
If E$/£ increases by 20%, this is consistent with an increase from:
a. 4 to 5. b. 4 to 6. c. 5 to 6. d. 4 to 7.
In the balance of payments, the statistical discrepancy is used to
A. obtain an accurate account of a balance-of-payments surplus. B. ensure that the sum of all debits matches the sum of all credits. C. ensure that the value of imports equals the value of exports. D. show how a balance-of-payments deficit is funded.