Alibaba is a Chinese e-commerce firm similar to Amazon.com in the United States. It has increased its power and global influence with strong leadership from its founder, including knowing when to acquire other organizations. For instance, in addition to acting as a platform for buyers to purchase products, it also acquired firms in the delivery and payments industries so it would have more control over the entire process. Alibaba's acquisitions are an example of a) full-line forcing. b) vertical channel integration. c) channel cooperation. d) horizontal channel integration. e) digital distribution.

Alibaba is a Chinese e-commerce firm similar to Amazon.com in the United States. It has increased its power and global influence with strong leadership from its founder, including knowing when to acquire other organizations. For instance, in addition to acting as a platform for buyers to purchase products, it also acquired firms in the delivery and payments industries so it would have more control over the entire process. Alibaba's acquisitions are an example of a) full-line forcing. b) vertical channel integration. c) channel cooperation. d) horizontal channel integration. e) digital distribution.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter25: Government And Product Markets: Antitrust And Regulation

Section: Chapter Questions

Problem 14QP

See similar textbooks

Similar questions

I am intrigued by the following article detailing how Nestle agreed to pay Starbucks $7.2B to distribute and sell Starbucks’ packaged coffees and teas around the world. Why would Nestle purposely put its competitors’ brands right next to it in the store, and then pay them for the privilege? Why wouldn’t Starbucks just take care of distributing its own brands rather than go through Nestle? Please explain how this outcome could be profit maximizing for both firms
Business journalists frequently write that the financial markets expect that firms that possess market power (e.g., firms that have prominent brand names) will raise their prices on a regular (e.g., annual) basis. Is this a correct characterization of the pricing behavior of firms with market power (e.g., firms that are monopolies)?
Three oligopolistic banks operate in the loan market with the inverse demand functiongiven by r (Q) = a-Q, where r is the interest rate per unit of loan and Q = q1 +q2 +q3and qi>=0 is the total amount of loans issued by bank i = 1, 2, 3. Also, a > 0 is aconstant. The cost of funds for bank i is given by cqi, where c belongs (0, a) is a constant.A bank's profit from loans is (r -c)qi. (1) Suppose the banks engage in Cournot competition. Find the symmetricNash equilibrium. How much profit does each bank make? (2) Now suppose banks compete in the following sequential manner: Bank1 chooses q1. Then banks 2 and 3 observe q1 and then simultaneously choose q2and q3, respectively. Find the subgame perfect equilibrium. How much profit doeseach bank make here? Does bank 1 enjoy an advantage being the first mover?
QUESTION 9 After a complex process of mergers and acquisitions, the technology company Globocorp Enterprises has acquired control of all the world's sigmantium (which is a semi-conductor that is essential to manufacture mobile phones). As a result of its control of international sigmantium production, Globocorp Enterprises is now the world's only supplier of mobiles and it therefore operates as a profit maximising monopolist in this market. Their marginal cost of production for each mobile is $160 per phone. Below is a table of prices Globocorp can charge for each mobile that it produces, and the corresponding quantities sold on any given day. Price ($/mobile phone) 400 380 360 340 320 300. Quantity (mobile phones) 45000 50000 55000 60000 65000 70000 What is Globocorp Enterprises' daily revenue at the profit maximising level of production? Answer to the nearest whole number (with no decimal places or $ sign), and only use the options in the table above.
China is a signatory country to the Madrid Protocol on the international registration of trademarks. Star- bucks opened its first.cafe in China in 1999 and has added outlets in numerous locations including Shanghai and at the Great Wall and the imperial palace in Beijing Xingbake Cafe Corp. Ltd. has imitated the designs of Starbucks cafes in its business coffee café locations in Shanghai. Xing (pronounced "Shing") means star, and bake, or "bak kuh" is pro- nounced like "bucks." Does the Seattle, Washington, Starbucks Corporation have standing to bring suit in China against Xingbake Cafe Corp. Ltd? If so, on what theory?
explain how google has the characteristics of a monoply market structure
A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Competitive Market Demand Competitive Outcome Consumer Surplus Marginal Cost Producer Surplus Quantity of Groceries Price, Cost, Revenue
10. Competitive Supermarkets A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Competitive Market Demand Competitive Outcome Consumer Surplus Marginal Cost Producer Surplus Quantity of Groceries Price, Cost, Rev enue
The shape of the long run average cost curve, which is "U" shaped and initially decreases because of increasing returns to scale. We will revisit this concept when we're studying the case of natural monopolies. These are companies that are allowed to be the only producers in the industry because the provision of their services entails high fixed costs and so production needs to be carried out at a large scale in order to achieve lower average total cost. This way, access to these services can be provided to consumers at low prices. Provide examples of companies that are natural monopolies while explaining their cost structure. You can also provide examples of natural monopolies that were later broken up by the government and the impact that had on consumers.
Suppose there are only two automobile companies,Ford and Chevrolet. Ford believes that Chevrolet will match any price it sets, but Chevrolet too is interested in maximizing profit. Use the following price and profit data to answer the following questions. a. What price will Ford charge?b. What price will Chevrolet charge once Ford has set its price?c. What is Ford’s profit after Chevrolet’s response?d. If the two firms collaborated to maximize joint profits, whatprices would they set?e. Given your answer to part (d), how could undetected cheatingon price cause the cheating firm’s profit to rise?
Please solve it quickly you can upload handwritten answer also. Consider Atlanta as an oligopoly market with five airlines that behave in a Cournot Model fashion. The Atlanta market demand schedule is: P = 390 - .5*Q. The Cost schedule for Delta is: MC=AC=Scomp=80. The Cost schedule for the other four firms (United, Southwest, et al) is: MC=AC=Scomp=40. What is Delta’s new market share?
Identify and briefly explain the two roles/function performed by Apple according to the retail distribution channel.