Two goods, X and Y, are called substitutes if
a. an increase in PX causes more Y to be bought.
b. an increase in PX causes less Y to be bought.
c. an increase in PY causes less Y to be bought.
d. an increase in income causes more of both X and Y to be bought.
Question 2
The features of the M-Form of firm organization are
a. divisions have difficulty responding to market changes
b. it is easier to maintain customer relationships
c. coordination across divisions is simple and does not take much management time
d. evaluating employees is easier because managers typically are similarly trained
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