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What are the welfare effects of the hmv cd club

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Reference no: EM13889963

1. Is the definition of entry barriers in this chapter normative or positive? Could such an entry barrier ever be socially beneficial?

2. What are the welfare effects of the HMV CD Club? Who wins and who loses?

3. Should the leases offered by a durable goods monopolist be long or short? Why?

4. You are asked to provide advice on how to allocate the rights to a valuable monopoly. Which of the following alternatives would you recommend:

(i) an auction;

(ii) graft;

(iii) nepotism; or

(iv) regulatory discretion based on the public interest? Why?

Reference no: EM13889963

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