The cross-price elasticity of demand between milk and soft drinks is likely to be
a. negative because the goods are complements
b. positive because the goods are complements
c. negative because the goods are substitutes
d. positive because the goods are substitutes
e. 0 because the goods are not usually consumed by the same person at one time
D
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The slope of a nonlinear curve
A) changes along the curve. B) is constant. C) is negative. D) is zero.
A British waste management company acquired two other companies that specialized in disposal of hazardous wastes even though the two companies were losing money. Planning and regulatory requirements in the United Kingdom make it difficult for firms to establish new hazardous waste landfills, and the combined companies would control most hazardous waste landfills in some parts of the country. How do the planning and regulatory requirements affect the market for hazardous waste?
A. They create a burden on the company, and so it probably will lobby to repeal them. B. They help the merged companies because it will be expensive for other firms to enter the market to compete with them. C. They make the market for hazardous waste disposal into a monopolistically competitive market. D. They make the market for hazardous waste disposal into a contestable market.