A firm that acquires a substitute product can try and reduce inter-product cannibalization by
a. Doing nothing
b. Repositioning its product or the substitute so that they do not directly compete with each other
c. Pricing each product at the same level
d. Raising prices on the low-margin products
b
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If two simultaneous move Bertrand price competitors have different constant marginal costs, then any price between their marginal costs could be a Nash equilibrium price.
Answer the following statement true (T) or false (F)
Money is ________ because goods and services are sold for money, then the money is used to purchase other goods and services.
a) a medium of exchange b) a unit of account c) a store of value d) fiat money
An indifference curve:
A. may be either upsloping or downsloping, depending on whether the two products are complements or substitutes. B. is downsloping and convex to the origin. C. is upsloping and has a constant slope. D. is downsloping and concave to the origin.
Equilibrium quantity is _____.
