The manufacturer has put in place a price discrimination policy, where it charges its household customers more per unit than it charges its industrial users. The manufacturer wants to keep the retailer from arbitraging away the profits from the policy. The manufacturer should
a. Vertically integrate into the retail operations in the household market
b. Vertically integrate into the retail operations in the industrial market
c. Reward the household market retailers for not arbitraging
d. All of the above
b
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For a fixed target real interest rate and target inflation rate, when inflation decreases, the Fed ________ interest rates, hence ________ short-run equilibrium output.
A. increases; increasing B. decreases; decreasing C. decreases; increasing D. increases; decreasing
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Efficient markets theory suggests that purchasing the published reports of financial analysts
A) is likely to increase one's returns by an average of 5 percent. B) is likely to increase one's returns by an average of about 3 to 5 percent. C) is not likely to increase financial returns. D) will increase financial returns in the first year but not in following years.
Protection from foreign competition benefits domestic producers in the protected industry at the expense of domestic consumers
a. True b. False Indicate whether the statement is true or false