« previous next »

Author Question: A manufacturer that is trying to avoid the double marginalization problem can do so by encouraging ... (Read 55 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?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Double-check for any oil or vacuum leaks after starting the engine. Double-check for any oil or vacuum leaks after starting the engine.
How to solve a trigonometric problem involving two right triangles (Question 1) How to solve a trigonometric problem involving two right triangles (Question 1)
Answer to Trig problem Answer to Trig problem
Sequence Series Arithmatic Progression Problem Sequence Series Arithmatic Progression Problem
Vector Problem Vector Problem
Problem Problem
Video: Simple Diffusion - gases and nonpolar compounds transport

For a complete list of videos, visit our video library