If a firm is in an antitrust court case being accused of monopolizing a product, the firm would 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

A positive cross-price elasticity of demand indicates that the firm's product has substitutes, which can help argue against the firm having a monopoly.

If a Firm Is in an Antitrust Court Case Being