In a multi-product firm, cannibalization is
a. An increase in the quality of both the brand's products
b. A decrease in the quality of both the brands products
c. An increase in both the brand's sales
d. An increase in one of the brand's sales due to the decrease in sales of the other.
d
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A legal monopoly is defined as a market where
A) only one lawyer operates. B) a legal barrier to entry exists. C) only one firm could earn a profit. D) entry and exit are legal.
Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase. B) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. C) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
If exchange rates are perfectly flexible, an expansionary U.S. monetary policy will
a. increase the supply of dollars in the foreign exchange market. b. shift the LM curve to the right. c. reduce the demand for dollars in the foreign exchange market. d. reduce the value of the dollar. e. all of the above.
If a firm fired one worker and lost 12 units of production and decides to add one more unit of capital, then to remain on the same isoquant what must be TRUE?
A) The MPK of the next unit of capital added equals 12. B) The firm must force the other workers to work more. C) The firm will experience a decline in output. D) The marginal rate of technical substitution is greater than 12.