If Polaroid wanted damages against Kodak for infringing on its instant development film process, and the courts found a high positive cross elasticity between purchases of Polaroid instant film and 35mm regular film, would that have strengthened or weakened Polaroid's claim against Kodak?
A large positive cross elasticity showed a strong substitute relationship, so that Polaroid was losing sales not only to Kodak instant film but also to 35mm film in general. Hence, it could not claim all lost sales were due to Kodak's infringement, which reduced the damages it could claim.
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If the average propensity to consume is 1.0, the marginal propensity to consume is 0.8, and real disposable income increases by $100, the additional saving is
A) $0. B) $20. C) $80. D) $100.
In consumer equilibrium: a. the average utility from each dollar spent is the same
b. total utility cannot be increased by reallocating spending among the goods consumed. c. total utility obtained from the consumption of each product is at a maximum. d. the marginal utility from the last unit of each good consumed is the same.
Something other than exploiting cheap foreign labor must be driving international trade
a. True b. False Indicate whether the statement is true or false
Rent-seeking activities:
A. have no effect on society's welfare. B. require resources, and the net result is to reduce total welfare to society. C. require resources, but the net result is to increase total welfare to society. D. do not require resources.