Firms tend to lower the price of their goods after acquiring a firm that sells a complementary good because
a. They gain market power
b. There is an increase in the overall demand for their products
c. The bundle has a more elastic demand than individual goods
d. The bundle has a more inelastic demand than individual goods
c
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Explain what is meant by a revaluation of a currency. Under what circumstances would a country devalue its currency?
What will be an ideal response?
An example of an activity that generates an external cost is
A) dumping soapsuds into a trout stream. B) national defense services. C) planting flowers along an interstate highway. D) eating an apple.
If a firm's goal is to maximize revenue, it will price its product to correspond to the unit-elastic segment of its demand curve
Indicate whether the statement is true or false
If a firm decides to produce a product that it once purchased from a firm upstream it has made a
A) horizontal decision. B) make or buy decision. C) downstream decision. D) sell or service decision.