What is one way firms can enforce tie-in sales?
A) One of the goods has no close substitutes.
B) contractual arrangements
C) information asymmetry
D) Any of the above.
D
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Price discrimination occurs when a firm sells
A) a given product at different prices at different points in time. B) a given product at different prices to different ethnic groups. C) a given product at different prices unrelated to differences in cost. D) a given product at different prices when it is produced in different colors.
How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?
Answer the following questions true (T) or false (F)
1. The only type of business that faces limited liability is a partnership. 2. In the United States, sole proprietorship profits are taxed at the business level and then are taxed again as personal income in the form of dividend payments. 3. Corporations are legally owned by their board of directors.
A small open economy has a current account balance of zero. A rise in the world real interest rate causes
A. a financial account surplus. B. absorption to exceed income. C. net borrowing from abroad. D. a current account surplus.