Horizontal contracts often a. Increase competition between ...

[MirandaLo]

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]

Answer to Question 1

b

Answer to Question 2

c