How does godfathering work? Who decides price? How do other firms in the oligopoly react to the price leader? Why?
Answer to relevant QuestionsExplain what is meant by a kinked demand curve. Why is it kinked? Suppose you were on a weight-controlling diet and regularly lunched on either Lean Cuisine or Healthy Choice, the only two firms in the microwave-ready, frozen diet-food industry. Why would you be happy if both firms had no ...Lean Cuisine and Healthy Choice can charge either $4 or $2 for their microwave-ready, frozen diet foods. Using the accompanying payoff matrix, and assuming for each a pricing strategy that avoids the worst-case scenario, ...What is the difference between the courts` use of the per se criterion and the rule of reason criterion in deciding whether firms violate antitrust laws? Describe why externalities generate market failure.
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