Which of the following contracts contain vertical restrictions that limit the transacting parties' choices but create economic value?
a. An agreement between firms to jointly invest in research and development.
b. A franchise contract specifying exclusive territory of operation.
c. A contract amongst competitive firms on an uniform pricing strategy.
d. A collusion between two oligopoly firms specifying individual production.
Question 2
When firms exit a monopolistically competitive industry:
a. the average total cost curves of remaining firms will shift upward.
b. the demand curves of remaining firms are increased at each level of output.
c. the remaining firms will decrease production.
d. the average revenue received by remaining firms will decrease at each level of output.
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