Which of the following is a true statement about the process of cross-subsidization, given that a firm is selling two products?
A. The two products cannot have interdependent demand functions.
B. The firm will sell both of its products at prices set above costs and the firm needs cost complementarities in the production of the two goods.
C. The firm needs cost complementarities in the production of the two goods.
D. The firm will sell both of its products at prices set above costs.
Answer: C
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The market for lawn services is perfectly competitive. Larry's Lawn Service cannot increase its total revenue by raising its price because ________
A) Larry's supply of lawn services is perfectly inelastic B) the demand for Larry's services is perfectly inelastic C) Larry's supply of lawn services is inelastic D) the demand for Larry's services is perfectly elastic
The production possibilities frontier has a tendency to bow outward from the origin
a. True b. False Indicate whether the statement is true or false
Business-cycle macroeconomics involves changes in Real GDP around a ____________ LRAS curve, while economic-growth macroeconomics deals with increases in Real GDP resulting from a ______________ LRAS curve
A) rightward-shifting; fixed B) fixed; leftward shifting C) leftward shifting; fixed D) fixed; rightward-shifting
When the U.S. dollar appreciates compared to the British pound, this means that ______.
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