The Conditions in Which Vertical Relationships Can Enhance a Firm's

question 29

Multiple Choice

The conditions in which vertical relationships can enhance a firm's ability to price discriminate include

• A) the manufacturer's product is of value to just one type of customer
• B) the costs of arbitraging the price differences across markets is large
• C) the manufacturer acquires the distributer in the higher priced market
• D) lack of competition provide the manufacturer with the ability to price above marginal cost

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