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 multiple types of customers
b. the costs of arbitraging the price differences across markets is large
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
a
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Marginal productivity theory implies that in a perfectly competitive market economy, a worker will receive income
A) that is less than the value of her marginal contribution to the production process. B) equal to the value of her marginal contribution to the production process. C) that is greater than the value of her marginal contribution to the production process. D) greater than, less than, or equal to the value of her marginal contribution to the production process, depending on her ability to negotiate with employers.
Price floors and price ceilings
a. lead to the same prices and quantities that would be found in a competitive market b. lead to technical efficiency c. cause the demand curve to shift to the left d. usually result from government intervention e. cause the supply curve to shift to the right
Dividends, retained earnings, and corporate income taxes sum to which of the income categories in the income approach to computing GDP?
A. corporate profits B. net interest C. indirect business taxes D. compensation of employees
The merger of Southwest Bell (SBC) and AT&T companies is an example of a
A. cooperative merger. B. vertical merger. C. consolidation merger. D. horizontal merger.