Author Question: After firm A producing one good acquired another firm B producing another good, it raised the prices ... (Read 22 times)

captainjonesify · **on:** Jul 1, 2018

After firm A producing one good acquired another firm B producing another good, it raised the prices for the bundle of goods. One can conclude that the goods were
a. substitutes
b. complements
c. not related
d. None of the above

Question 2

A pharmaceutical company faces a price regulation where it cannot charge any higher than 5,000 for a lifesaving drug. The company knows that the patients put a high value on this product and are willing to pay up to 10,000 for it. The company decides to sell the drug together with periodic blood testing for 10,000 . This is an example of
a. Tying
b. Bundling
c. Fraud, the company is not allowed to sell for any higher than the regulatory pric
d. Both A&B