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Solution Summary

The answer to this problem explains monopoly power and restrictive trade practices. The references related to the answer are also included.

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Case 1
1. The case of restrictive car practices illustrates monopoly and anti-competitive practices. Secret agreements to keep British car prices high are evidence. Manufacturers fixing prices through selective and exclusive distribution is another example of monopoly and anti-competitive practice. Selling only through official dealers is an example. The fact that car buyers in Britain were paying 10 to 12 percent more than those in France, Germany, and Italy for the same models is evidence of monopoly and anti-competitive practice. The fact that car makers were blocking cheaper European cars is evidence that monopoly and anti-competitive practices were taking place. Threat of losing dealership, if dealers sell to UK buyers, and procrastination by manufacturers in making delivery of right hand drive models to European dealers, are examples ...

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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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