In the DuPont cellophane case, rivals accused DuPont of monopolizing cellophane. DuPont claimed that the relevant market was flexible wrapping material, such as wax paper and aluminum foil, rather than just cellophane. DuPont won the case. What type of evidence constituted DuPont's defense?
DuPont needed to show that other flexible wrapping materials are substitutes for cellophane, which requires a large, positive cross elasticity. DuPont showed that as the price of other flexible wrapping materials increased, sales of cellophane declined substantially, showing a large, positive cross elasticity.
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If a good is quasilinear, its own-price demand curve is vertical.
Answer the following statement true (T) or false (F)
The marginal cost (MC) curve intersects the
A) ATC, AVC, and AFC curves at their minimum points. B) ATC and AFC curves at their minimum points. C) AVC and AFC curves at their minimum points. D) ATC and AVC curves at their minimum points.
Which of the following is true for the law of demand?
a. Sellers increase the quantity of a good available as the price of the good increases. b. An increase in price results from false needs. c. There is an inverse relationship between the price of a good and the quantity of the good demanded. d. Prices increase as more units of a product are demanded.
When economic activity abroad is increasing
A. the U.S. inflation rate tends to rise. B. U.S. exports tend to decrease. C. the U.S. inflation rate tends to fall. D. U.S. exports tend to increase.