Copier Repairs When Kodak leased large photocopiers to businesses, they also bundled a maintenance contract for periodic repairs. Third-party repair firms claimed that Kodak violated antitrust laws because this bundle guaranteed Kodak a monopoly on repairs and excluded competitors' access. Why might the bundle have created value over what third-party repair shops could offer?
Kodak is worried that a poor quality repairman will blame his failure to fix a broken photocopier on a poor Kodak machine. Repairmen who experience unexpected difficulties would not want to reveal their own incompetence. Instead, they can claim to the customer that Kodak just produces poor equipment. A repairman who is a Kodak employee has no incentive to shift the blame.
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If a monopoly is producing an amount of output level at which marginal revenue exceeds marginal cost, in order to increase its profit the monopoly will ________ its price and ________ its output
A) raise; decrease B) lower; increase C) lower; decrease D) raise; increase
The city government recently implemented a price ceiling on the amount landlords can charge for rent. Your friend then complains “This will decrease the quantity of apartments supplied.” Evaluate this statement
Please provide the best answer for the statement.