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To whom would you expect a regulated firm that supplies access to an essential facility to direct its efforts to raise the costs of access: (i) high-cost or low-cost competitors, and (ii) when downstream products are differentiated, entrants with high cross price elasticities or low cross price elasticities with the incumbent's products? How does heterogeneous products downstream make it more difficult for a regulator to monitor and test for discriminatory access?

Microeconomics, Economics

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