Was the governments argument economically correct

Reference no: EM13221022

Many years ago, the U.S. Government investigated Amway because its products are not sold in stores but rather are sold by individual salespeople. The government claimed that Amway prices were higher because (1) they cannot be purchased in regular grocery or hardware stores and (2) the presence of salespeople creates another "layer" that simply adds on the price. Was the government's argument correct, economically speaking? Why or why not?

Reference no: EM13221022

Questions Cloud

Organisational benefits of attracting a diverse workforce : Describe at least 3 factors that affect an organisation's approach to recruitment and selection and identify and explain at least 3 organisational benefits of attracting and retaining a diverse workforce

What is the purpose of registering securities : Analyze why you think that the Securities Act of 1933 allows for an exemption to a nonprofit educational organization?

How many teams have to be deployed by the company : A team works for 300 days/year and management wants each team to have a capacity cushion 30 days per year. How many teams have to be deployed by the company to complete the project in one year.

How to calculate projected cost of goods sold : How to calculate projected cost of goods sold while trying to reduce inventory levels.

Was the governments argument economically correct : (1) they cannot be purchased in regular grocery or hardware stores and (2) the presence of salespeople creates another "layer" that simply adds on the price. Was the government's argument correct, economically speaking Why or why not

Explain the horizontal direction before landing : how long was the flight? How far did it travel in the horizontal direction before landing? What was the highest altitude it reached? Neglecting air friction at what angle should the projectile have been fired to maximize the horizontal range.

Explain the sign for delta g is negative : how could one be endothermic (positive delta H- NaNO3 dissolves in water) and one be exothermic (negative delta H- NaCH3COO dissolves in water)? Is there more to consider than just the dissolving process?

Is the federal funds rate currently too high or too low : The federal funds rate is currently 3 percent. The equilibrium real federal funds rate is 3 percent, and the weights on the output gap and inflation gap are 0.5 each. The inflation target is 1 percent. Is the federal funds rate currently too high o..

User Account

All Pages