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Author Question: Horizontal contracts often a. Increase competition between substitute products b. Eliminate ... (Read 84 times)

MirandaLo

  • Hero Member
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  • Posts: 538
on: Jul 1, 2018
Horizontal contracts often
 a. Increase competition between substitute products
 b. Eliminate competition between substitute products
 c. Do not change the competition between substitute products
  d. None of the above

Question 2

Assume that the price elasticity of demand for movie theatres is -.85 during all evening shows but for all afternoon shows the price elasticity of demand is -2.28 . For the theatre to maximize total revenue, it should
 a. Charge the same price for both shows, holding other things constant.
  b. Charge a higher price for the afternoon shows and lower price for the evening shows, holding other things constant
  c. Charge a lower price for the afternoon shows and higher price for the evening shows, holding other things constant
  d. Need more information


Dunkey

  • Sr. Member
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  • Posts: 333
Reply #1 on: Jul 1, 2018
Answer to Question 1

b

Answer to Question 2

c


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