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HP Ties Its Printer Ink to Its Printers by Embedding

Question 122

Multiple Choice

HP ties its printer ink to its printers by embedding a patented printer head in its ink cartridge rather than build it into the printer. This raises the cost of producing the ink cartridge. If the government passed a law requiring HP ink be used with HP printers, would this law increase or decrease deadweight loss?


A) decrease
B) increase
C) no change
D) impossible to say

Correct Answer:

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