Meeting-competition clauses may serve

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Reference no: EM139303

Q1. Explain how meeting-competition clauses may serve as an enforcement mechanism for price-fixing agreements of cartels. The discussion of Chapter suggests another possible rationale for such clauses. Illustrate what is it?

Q2. Assume there are two groups of consumers and that it is optimal for a non discrimination monopoly to set p=$10. At that price, no one from the first group chooses to purchase. Now, Assume the monopoly can price discriminate. Will the total output expand? Why or why not?

Reference no: EM139303

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