One defense Microsoft can use to argue that it does not have monopoly power in the market for operating systems, is to show that
a. demand for operating systems is highly elastic.
b. many other commodities have higher income elasticities of demand than operating systems.
c. the cross elasticity of demand between Microsoft’s operating system and other operating systems is large and positive.
d. many of its competitors' products are complements for its service.
c. the cross elasticity of demand between Microsoft’s operating system and other operating systems is large and positive.
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Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis. When the level of capital in this economy rises, it causes ____________________which shifts the LRAS curve ____________ resulting in ______________________
A) a movement down along a given production function; leftward; a shrinking economy B) the production function to shift downward; leftward; a shrinking economy C) a movement up along a given production function; rightward; economic growth D) the production function to shift upward; rightward; economic growth
The foreign exchange market is the market in which
A) foreigners buy U.S. real estate. B) foreign stocks and bonds are bought and sold. C) ideas from different countries are exchanged. D) currencies of different countries are bought and sold. E) none of the above