Firm's should raise the price of their goods
A)If the demand for the product is elastic
B)If it acquires a firm selling a complement good
C)If it acquires a firm selling a substitute good
D)Both a and c

Question

Quizplus · Accepted Answer

If a firm acquires a firm selling a substitute good, it can raise prices because it has more control over the market for similar products, reducing competition.

Firm's Should Raise the Price of Their Goods