Question: Suppose that a monopoly firm introduces a policy of resale

Suppose that a monopoly firm introduces a policy of resale price maintenance. Under the "special services" theory of resale price maintenance, would the firm's output increase or decrease? Conversely, suppose that the purpose of the resale price maintenance is to enforce a cartel among the dealers. Now would the firm's output increase or decrease?


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  • CreatedFebruary 21, 2014
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