PRINCIPLES OF ECONOMICS
14th Edition
ISBN: 2810015433483
Author: OpenStax
Publisher: OpenStax
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Textbook Question
Chapter 11, Problem 17RQ
What is exclusive dealing? How might it reduce competition and when might it be acceptable?
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Chapter 11 Solutions
PRINCIPLES OF ECONOMICS
Ch. 11 - Is it true that a merger between two films that...Ch. 11 - Is it true that the four-firm concentration ratio...Ch. 11 - Some years ago. two intercity bus companies,...Ch. 11 - As a result of globalization and new information...Ch. 11 - Why would a firm choose to use one or more of the...Ch. 11 - Urban transit systems, especially those with rail...Ch. 11 - From the graph you drew to answer Exercise 11.6,...Ch. 11 - What real world changes made the deregulation...Ch. 11 - What are some of the benefits of the deregulation?Ch. 11 - What might some of the negatives of deregulation...
Ch. 11 - What is a corporate merger? What is an...Ch. 11 - What is the goal of antitrust policies?Ch. 11 - How do we measure a four-firm concentration ratio?...Ch. 11 - How do we measure a Herfindahl—Hirshman Index?...Ch. 11 - Why can it be difficult to decide what a market is...Ch. 11 - What is a minimum resale price maintenance...Ch. 11 - What is exclusive dealing? How might it reduce...Ch. 11 - What is a tie-in sale? How might it reduce...Ch. 11 - What is predatory pricing? How might it reduce...Ch. 11 - If public utilities are a natural monopoly, what...Ch. 11 - If public utilities are a natural monopoly, what...Ch. 11 - What is cost-plus regulation?Ch. 11 - What is price cap regulation?Ch. 11 - What is deregulation? Name some industries that...Ch. 11 - What is regulatory capture?Ch. 11 - Why does regulatory capture reduce the...Ch. 11 - Does either the four-firm concentration ratio or...Ch. 11 - What would be evidence of serious competition...Ch. 11 - Can you think of any examples of successful...Ch. 11 - If you were developing a product (like a web...Ch. 11 - In the middle of the twentieth century, major U.S....Ch. 11 - Why are urban areas willing to subsidize urban...Ch. 11 - Deregulation, like all changes in government...Ch. 11 - Do you think it is possible for government to...Ch. 11 - Use Table 11.5 to calculate the four-firm...Ch. 11 - Use Table 11.5 and Table 11.6 to calculate the...Ch. 11 - If the transit system were allowed to operate as...Ch. 11 - If the transit system were regulated to operate...Ch. 11 - If the transit system were regulated to provide...
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- I am intrigued by the following article detailing how Nestle agreed to pay Starbucks $7.2B to distribute and sell Starbucks’ packaged coffees and teas around the world. Why would Nestle purposely put its competitors’ brands right next to it in the store, and then pay them for the privilege? Why wouldn’t Starbucks just take care of distributing its own brands rather than go through Nestle? Please explain how this outcome could be profit maximizing for both firmsarrow_forwardSomehow Im having trouble with parts a-c. Could I have help understanding and solving giving this is a Bertrand duopoly model.arrow_forwardBertrand duopolists face MWTP = 6 - Q and can produce any quantity without marginal and fixed cost. If the two firms compete for only 1 period, what is a Nash equilibrium price? (Assume prices must be in whole cents. Remember, do not enter the $ sign.)arrow_forward
- What do we mean by monopolistics competition ? Why do we use this model to examine intra-industry tradearrow_forwardIn January 2007, XM enjoyed about 58 percent of satellite radio subscribers, and Sirius had the remaining 42 percent. Both firms were suffering losses, despite their dominance in the satellite radio market. In 2008, the DOJ decided not to challenge a merger, and these two firms united to become Sirius XM. If you were an economic consultant for Sirius, what economic arguments would you have presented to the DOJ to persuade it not to challenge the merger? Explainarrow_forwardIf two businesses are selling the same good or service, who would benefit if theycooperated on pricing? Who would benefit if they competed based on pricing?arrow_forward
- Who was one who developed duopoly model in the economics??arrow_forwardPlease consider an oligopoly market. Suppose you were a producer in the market. Would you corporate with or compete against other producers? If you chose competition, how would you defeat the rivalries?arrow_forwardAssume that we have an entry situation like that in the Judo Economics example. There is an incumbent firm (I) and a new entrant (E). Now we will look at the outcome if the entrant is at a disadvantage. The incumbent has constant marginal costs of production of $100, while marginal costs for the entrant are $120 per unit. There are 100 identical buyers who are willing to pay $200 for the incumbent’s product, but only $160 to buy from the entrant. Any consumer can buy from the incumbent, but only those targeted by the entrant can buy from the entrant. Those consumers targeted by the entrant can choose to buy from the incumbent or the entrant and will choose the lowest price (with the incumbent winning ties). At the first move of the game the entrant decides how many consumers (N) to target and sets a single price (P) to those targeted consumers. The incumbent then sets a single price for all 100 consumers, deciding to defend the market or accommodate the new entrant. Consumers then…arrow_forward
- a) What is a tie-in contract and how does that differ from bundle pricing? b) What is a conglomerate merger and why are they more likely to be approved? c) Limit pricing is a strategy where a firm sets a low, but profitable, price to discourage entry. How does that differ from predatory pricing?arrow_forwardWhich factor would make it difficult for Georgia peach suppliers to collude? Select one: a. each supplier having the same costs b. only a few suppliers c. buyers of peaches having very little bargaining power since peaches are homogeneous d. only a few buyers of peachesarrow_forwardFigure: Insulin Prices Suppose a major insulin manufacturer sells in two markets, the U.S.A. and Mexico. If the marginal cost is the same in both markets, to maximize profits, it would charge _______ in the U.S.A. and _________ in Mexico. Group of answer choices $3700, $600 $50, $50 $3650, $550 $600, 3700arrow_forward
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