Author Question: Why is market definition important for economic decision making? A) A firm is interested in ... (Read 33 times)

renzo156 · **on:** Jul 1, 2018

Why is market definition important for economic decision making?

A) A firm is interested in knowing its actual and potential competitors.
B) A firm will define its market in order to maximize revenue.
C) Government regulators are interested in knowing the effect of mergers and acquisitions on competition and prices in a particular market.
D) both A and C
E) both A and B

Question 2

Based on Figure 3.2, it can be inferred that:

A) Alvin does not consider good X as good.
B) Alvin will never purchase any of good Y.
C) Alvin regards good X and good Y as perfect substitutes.
D) Alvin regards good X and good Y as perfect complements.
E) none of the above