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 small
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
b
Economics
You might also like to view...
The quantity theory of money implies that over the long run, the inflation rate will ________
A) equal the nominal interest rate B) equal the growth rate of M2 minus the growth rate of real output C) equal the growth rate of M2 plus the growth rate of real output D) equal the velocity of money
Economics
When firms exit a perfectly competitive industry, the market supply curve shifts to the left
Indicate whether the statement is true or false
Economics