If a firm is in an antitrust court case being accused of monopolising a product, what would the firm hire an economist to show?
A)The cross-price elasticity of demand between the firm's good and another is negative.
B)The cross-price elasticity of demand between the firm's good and another is positive.
C)The price elasticity of demand for the firm's good is highly inelastic.
D)The income elasticity of the firm's good is inferior.

Question

Quizplus · Accepted Answer

The firm would hire an economist to show that the cross-price elasticity of demand between the firm's good and another is positive, meaning that there are substitutes for the product and the firm does not have complete control over the market. This would weaken the case of the accuser claiming that the firm is monopolizing the market.

If a Firm Is in an Antitrust Court Case Being