The practice of tying is usod to a. eshance the enforcement of antitrust lasws b

Question

The practice of tying is usod to a. eshance the enforcement of antitrust lasws b. encourage the enforcement of collusive agreements c conteol fhe retail price of a collection ef related products d package products to sel) at a combined price closer to a buyert's toral wllingness to pay . Which govermment entity is charged with investipating and enfoecing antiust law? The U.S. Justice Departmest b. The U.S. Commerce Departmen e The U.S.Treasury Department d. The Bareau of Aleobol, Tobacco, and Fiream 1n the majority of cases where there is a tatural msonopoly, de u s pommin usually S. government usually deals with the peoblem a by splitting the natural monepoly into smalier companies b through regulation . by turming the natural monopoly into a publie eterprise. d. by doing sothing Scenario 15-3 its macicet arca. marketing rights to PMC. Since Black Box ot delivering PMC to subscribers is movie chanael (PMC) in its Black Box Cable TV is able to purchase an exchasive right to sell a peenvium movie chames Let's assume that Black Box Cable pays $150,000 a year for the has alreadty installed cable to all of the bones in its market area, the zero. The manager of Black Box needs to know BeSore setting price, she hires an there are two types ef will pay as mach ag $150 a year for the new PMC premium 20,000 occasional TV viewers who will pay as much as $20 a year for a exchasive in its market area, the marginal cost of what price to charge for the PMC maximize ber prot service to s of subscribers who value preium movie First are the 4,000 die-bard TV viewers who premium channel. Second, the PMC chasnel $20 a year for a vubscription to 33, . Refer to Seenario 15-3. If Black Box Cable TV is unable to price discriminate to price discriminate, what price will it choose to NOTE: as much as" means at mes+ maximize its profit, and what is the amount of the prof a prioe- s20; profit $400,000 b. price $20, profit $330,000 e prioe $150; peofit-$450,000 d. price si50; profit-$600,000 to Scenario 15-3. If Black Box Cable TV is able to price discriminate, what would be the maximum amount 34 Refer of profit it could generate? a. $500,000 b. $600,000 c. $850,000 d $925,000 Yo. R Refer to Scenario 15-3. What is the deadweight loss associated with the Scenario 15-3. What is the deadweight loss ssociated with the nondiscriminating pricing policy compared to the price discriminating policy? a. $375,000 b. $400,000 c. $475,000 d. It cansot be determined from the information provided. that she was damaged by an illegal arrangement to restrain trade, that person can sue and she sustained, as provided for in the Sherman Act. 34, Ifa persoa can prove that she was 37 38 the damages she sustained, as provided for in the the damages she sustained, as provided for in the Clayton Act. b. t c. three times the damages she sustained, as provided for in the Sherman Act. the damages she sustained, as provided for in the Clayton Act. 39 41 A market force that can prevent firms from price discriminating is a fluctuating resource prices b. arbitrage c. high fixed costs d. marginal-cost pricing. 4z. 43 45 46 47

Explanation / Answer

35
Ans is b
Tying is often used when the supplier makes one product that is critical to many customers. By threatening to withhold that key product unless others are also purchased, the supplier can increase sales of less necessary products.
36.
Ans is A
37.
Ans is b

41

the Clayton Act of 1914. According to the act, if a person can prove he/she was damaged by an illegal arrangement to restrain trade, that person could sue and recover 3x the damages he/she sustained.

Ans is d

42

Ans is b

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