« previous next »

Author Question: A manufacturer that is trying to avoid the double marginalization problem can do so by encouraging ... (Read 57 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?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

A double bond between two oxygen atoms A double bond between two oxygen atoms
Manganese helps Deinococcus radiodurans to avoid radiation damage. Manganese helps Deinococcus radiodurans to avoid radiation damage.
a) Avoid locking your elbows. b) To avoid locking your elbows, keep your elbows facing sideways. a) Avoid locking your elbows. b) To avoid locking your elbows, keep your elbows facing sideways.
Problem Problem
Problem Problem
Escape Speed Problem Escape Speed Problem
Video: Pneumonia Animation

For a complete list of videos, visit our video library