« previous next »

Author Question: A manufacturer that is trying to avoid the double marginalization problem can do so by encouraging ... (Read 61 times)

ishan

  • Hero Member
  • *****
  • Posts: 546
on: Jul 1, 2018
A manufacturer that is trying to avoid the double marginalization problem can do so by encouraging competition rather than protecting retailers through exclusive territories, and controlling final product price through resale price maintenance
 
  contracts. Indicate whether the statement is true or false

Question 2

Which of the following could prevent the opportunistic behavior of firms?
 
  A) efficient contracts
  B) good reputation
  C) revealing relevant information about firms
  D) All of the above


jazzlynnnnn

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jul 1, 2018
Answer to Question 1

T In principle, this is true, because if discounting can be avoided through resale price maintenance, competition among retailers can avoid double marginalization. As Chapters 8 and 9 will show, resale price maintenance may not be permitted under antitrust law.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

The Nine-Dot Problem The Nine-Dot Problem
Cards Used in a Socially Situated Version of the Problem-Solving Test Cards Used in a Socially Situated Version of the Problem-Solving Test
The problem of completing the 5 end in copying a linear DNA molecule The problem of completing the 5 end in copying a linear DNA molecule
Hyperbola Math Problem (pt2) Hyperbola Math Problem (pt2)
Derivative application problem Derivative application problem
Math Thinking Problem Math Thinking Problem
Video: Transcription—A molecular view

For a complete list of videos, visit our video library