To reduce our dependence on foreign oil, policy makers must realize that the cross-price elasticity sign for gasoline and fossil fuel-burning cars is negative.

Answer the following statement true (T) or false (F)


True

If policy makers want to reduce our foreign energy dependence, they must realize that gasoline and fossil fuel-burning cars are complementary goods. The sign on the cross-price elasticity for complementary goods is negative.

Economics

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Economics

The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants. What price should the firm set?

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Economics