All of the following actions are potential rule -of-reason violations except which one?
A) an agreement with a competitor firm to adjust output levels
B) an exclusive dealings contract with a customer
C) an agreement with a customer about the resale price the customer will charge for the product
D) a tying sale with a customer
A) an agreement with a competitor firm to adjust output levels
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Why may equity finance be preferred to debt finance for developing countries?
A) A fall in domestic income automatically reduces the earnings of foreign shareholders without violating any loan agreement. B) There are laws insuring against any default with equity finance. C) The risk is shared between debtor and creditor with debt finance. D) The tax structure leaves equity finance unconstrained. E) Repayments are unaffected by falls in real income.
Which of the following could be responsible for an increase in the price of wheat?
a. an increase in the supply of wheat b. an increase in the demand for wheat c. a decrease in the demand for wheat d. a simultaneous increase in supply and decrease in demand for wheat