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Non-Price Vertical Restraints.
a) What are exclusive territories (ET)? Explain 4 reasons why a manufacturer would be willing to grant an ET to a dealer? Under what circumstances are ET in the public interest? Discuss the possible impacts of car manufacturers granting ET to their car dealerships.
b) What is exclusive dealing (ED)? Explain 4 reasons why manufacturers would want to impose ED on their dealers. Under what circumstances is ED in the public interest? Discuss the possible impacts of beer producers imposing ED on dealers (i.e. pubs) in the UK.
Throughout much of the 1970s, the United States experienced rising energy prices. Assume that the US economy was in long-run equilibrium before these increases began. Use the aggregate demand- aggregate supply model to illustrate graphically the shoc..
A proposed bridge will last 40 years. Annual maintenance will be $16,000. Major overhaul expenses in addition to the annual maintenance will occur at the end of years 10 and 30. Each overhaul will cost $20,000. First cost is $120,000. If i=10%, what ..
During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit crisis in the financial markets, and declining consumer and business confidence. What components of aggregate demand were aff..
Write down John's lifetime budget constraint. Explain how much does he save for the retirement when he is at work.
What can the central bank do, if anything, to counteract the short-run changes in output and prices? If the central bank does not take any policy actions, what will be the long-run impact of the electronic payments system on prices and output?
Suppose the own price elasticity of demand for good X is −0.2, and the price of good X decreases by 10 percent. We would expect the quantity demanded of good X to:
q. 1. patent systems can be worthwhile if induced innovations are important also if the rewards from patents speed them
This is a point I find very confusing and very hard to justify to students. Depending on the books, one finds many different conventions regarding the sign of elasticities and marginal rate of substitution (MRS). Some define them taking absolute valu..
q1. assume which there is an increase in total factor productivity. in the search model of unemployment find out the
Creative Writing Chose any of our genres (fiction, creative nonfiction, poetry, and drama) and create a short piece (250 - 500 words) that generates an atmosphere of sorrow while maintaining a glimmer of hope.
A survey of 430 business travelers found 155 used a travel agent to make arrangements (USA today, November 20,2003) Develop a descriptive statistic that can be used to estimate the percentage of all business travelers who use a travel agent to make t..
An average yearly rate of 10 to 11 percent in the late 1980s. Illustrate what effect did this decline have on.
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