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 large
c. the manufacturer acquires the distributer in the higher priced market
d. lack of competition provide the manufacturer with the ability to price above marginal cost
d
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The figure above represents the behavior of total revenue as price falls along a straight-line demand curve. Unit elasticity of demand occurs at
A) point g. B) point h. C) point i. D) point j.
The United Kingdom has a health care system under which the government owns most of the hospitals and employs most of the doctors
Indicate whether the statement is true or false
Maurice Richard loves to play hockey. He would play the minor leagues and the major leagues with equal gusto. Suppose he earned $35,000 playing for the minor league Urbana Tigers and "gets the call" from the Dallas Stars, a major league team. He excitedly tells his wife, an economist, that his wage is now $379,000 (that's the contract he signed) and she informs him that his wage-related rent is
a. $344,000 b. $379,000 c. $35,000 d. $414,000 e. $0 because he signed the "wage" contract
If wage rates rise at the same time that labor productivity increases, what is the effect on short-run aggregate supply (SRAS)?
A) SRAS rises. B) SRAS falls. C) SRAS remains constant. D) SRAS may rise, fall, or remain constant.