The increase in the demand for widgets, shown in the figure above, is the result of an increase in the price of McBoover devices from $9 to $11. Therefore, the cross-price elasticity for these two products is

Externalities between two firms can be "internalized" if: I. The two firms merge. II. Bargaining costs are zero. III. The externalities affect each firm equally. IV. Marginal costs for both firms are constant. Which statement(s) correctly complete(s) the sentence?

a. Only II. b. All except III. c. I and II, but not III and IV. d. I and IV, but not II and III

A default happens when a:

A. borrower fails to pay back a loan according to the agreed-upon terms. B. lender fails to allot money according to the terms set by the government. C. borrow pays back a loan early. D. bank fails to have enough cash on hand to give all depositors their money.