If Polaroid wanted damages against Kodak for infringing on its instant development film process, and the courts found a high positive cross elasticity between purchases of Polaroid instant film and 35 mm regular film, would that have strengthened or weakened Polaroid’s claim against Kodak?
What will be an ideal response?
A large positive cross elasticity showed a strong substitute relationship, so that Polaroid was losing sales not only to Kodak instant film but also to 35mm film in general. Hence, it could not claim all lost sales were due to Kodak’s infringement, which reduced the damages it could claim.
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The ________ plots the relationship between prices and the quantity that buyers are willing to purchase
A) supply curve B) isoquant C) indifference curve D) demand curve
Say that Japanese firms commit to avoid laying off their employees when demand for their products is low, but American firms often lay off workers when demand is low. As a result, ceteris paribus, we would expect Japanese firms to: a. face more elastic demand curves than American firms
b. have relatively greater variable costs than American firms. c. continue to produce at some prices at which American firms would shut down. d. shut down at prices at which American firms would continue to operate.
The inevitable cost of protecting domestic industries from foreign competition will be higher prices for domestic consumers.
a. true b. false
Refer to the diagrams. If $4 is Firm B's profit-maximizing price, its:
A. ATC must be $4.
B. MC must be $4.
C. MR must be $4.
D. MC must be zero.