Firms may choose to discriminate in order to reduce information costs associated with screening applicants

Double markup problems arise when

a. upstream firms have no market power b. downstream firms have no market power c. upstream and downstream products are complementary in demand d. upstream and downstream firm's pricing decisions tend to increase the demand for the other product

A problem with using the price of a product similar to the intermediate good sold on the market is

a. the market price includes a margin above marginal cost b. the product on the market may include costly features your downstream division does not use c. the product on the market may be cheap because it is not as high of quality as your downstream division uses d. all of the above