Firm A producing one good acquires another firm B producing another good. Price elasticity of demand for Firm A's good is -1.8 and Firm's B is -1.8 . Holding other things constant and assuming both goods are complements, the acquiring firm should
a. lower prices on both goods with a larger decrease in Firm A's good
b. lower prices on both goods with a larger decrease in Firm B's good
c. Lower prices on both goods by the same amount
d. Lower prices on both goods
c
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Which of the following is the best example of a voluntary export restraint?
A) a $5,000 per-car fee imposed on all sports utility vehicles imported into the United States B) a subsidy granted by the U.S. government to domestic sports utility vehicle manufacturers so they can compete more effectively with foreign sports utility vehicle manufacturers C) a tax placed on all sports utility vehicles sold in the domestic market D) a limit set by the Japanese government on the number of sports utility vehicles that the United States can import from Japan
Considering open market operations, which of the following observations is incorrect? a. it can be implemented quickly and cheaply
b. it can be done quietly without a lot of political debate c. it is potentially the most powerful tool to control the supply of money. d. it is the most important method now used to control the supply of money.
Which of the following would be most likely to cause an increase in the wage rate for a particular job?
a. A decrease in the danger of this job. b. An increase in the number of workers with the skills for this job. c. An increase in the danger of this job. d. An improvement in the working conditions associated with this job. e. A decrease in the amount of training needed to perform this job
Instead of placing a tariff on the imports of steel, a government has decided to offer steel workers trade adjustment assistance which will allow them to pre-qualify for unemployment benefits and retraining. Such a policy is consistent with
A. the national pride argument. B. the developing worker argument. C. the specificity rule. D. the infant industry argument.