HP Ties Its Printer Ink to Its Printers by Embedding

question 122

Multiple Choice

HP ties its printer ink to its printers by embedding a patented printer head in its ink cartridge rather than build it into the printer. This raises the cost of producing the ink cartridge. If the government passed a law requiring HP ink be used with HP printers, would this law increase or decrease deadweight loss?

• A) decrease
• B) increase
• C) no change
• D) impossible to say

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