Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

A few years ago, the U.S. government created a "Do Not Call Registry" and forbade marketing firms from calling people who placed their names on this list. Today, an increasing number of companies are sending mail solicitations to individuals inviting them to send back an enclosed postcard for more information about the firms' products. What these solicitations fail to mention is that they are worded in such a way that someone who returns the postcard gives up protection from telephone solicitations, even if they are on the government's "Do Not Call Registry." In what type of behavior are these companies engaging? Explain your answer. (Hint: Are these firms meeting the letter of the law but violating its spirit?)

Short Answer

Expert verified

The companies do not phone the people who have enrolled with the Registry; instead, they use a different method to contact them.

Step by step solution

01

Introduction.

Marketing is the method of recruiting new clients or customers to your products and services. The key term in this definition is "process." Marketing encompasses market research, advertising, sales, and distribution.

02

Given Data.

Firms that send solicitation mail to individuals are legally bound by the "Do Not Call Registry" restrictions. The companies do not phone the people who have registered with the Registry; instead, they utilize a different means to contact them.

03

Explanation.

Marketing firms breach the basic purpose of government regulation by sending mail to people offering information about the production.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

As noted in the chapter, separating the production of electricity from its delivery has led to considerable deregulation of producers.

a. Briefly explain which of these two aspects of the sale of electricity remains susceptible to natural monopoly problems.

b. Suppose that the potential natural monopoly problem you identified in part (a) actually arises. Why is marginal cost pricing not a feasible solution? What makes average cost pricing a feasible solution?

c. Discuss two approaches that a regulator could use to try to implement an average-cost-pricing solution to the problem identified in part (a).

Local cable television companies are sometimes granted monopoly rights to service a particular territory of a metropolitan area. The companies typically pay special taxes and licensing fees to local municipalities. Why might municipality give monopoly rights to a cable company?

A package delivery company provides both overnight and second-day delivery services. It charges almost twice as much to deliver an overnight package to any world location as it does to deliver the same package to the same location in two days. Often, second-day packages arrive at company warehouses in destination cities by the next day, but drivers intentionally do not deliver these packages until the following day. What is this business practice called? Briefly summarize alternative perspectives concerning whether this activity should or should not be viewed as a form of price discrimination.

Why do you suppose that a growing number of behavioral economists are calling for adoption of more pragmatic approaches to formulating regulations? Explain briefly.

An years past, firms around the world have secretly engaged in collusive agreements to restrain production and push prices above competitive levels.

Evidence compiled by government officials investigating such agreements has revealed that conspiring firms often utilize similar methods of establishing and enforcing collusive restraints of trade. Most agreements, for instance, assign to each firm an allowed market share, a permitted region of operations, or an approved set of customers. In addition, participating firms commonly are required to exchange sales information so that they can monitor adherence to their agreements to restrain trade. In this chapter, you will learn why firms that typically utilize these techniques to formulate and maintain collusive agreements engage in secret conspiracies: Such agreements are illegal under U.S. antitrust laws.

Understand the foundations of antitrust regulations and enforcement

See all solutions

Recommended explanations on Economics Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free