Economics Question

Managerial Economics Flag question: Question 1 Question 1 pts The general rule to increase profits when two close substitute brands are jointly owned is to Group of answer choices increase prices for both brands. decrease prices for both brands. increase prices on one brand, decreasing it for the other. increase prices on one brand, keeping the prices of the second brand constant. Flag question: Question 2 Question 1 pts After acquiring closely substitutable product brands, a firm can successfully raise prices on both brands without losing much of its total sales because Group of answer choices customers are insensitive to price changes. none of these sales would be captured by its other brand. some of these sales lost by one brand would be captured by the other. customers are sensitive to price changes. Flag question: Question 3 Question 1 pts For jointly owned substitute products, cannibalization leads to MR _______ MC. Group of answer choices being higher than being lower than equaling being higher than or equal to Flag question: Question 4 Question 1 pts A firm that acquires a substitute product can try to reduce cannibalization by Group of answer choices doing nothing. repositioning its product or the substitute so that they do not directly compete with each other. pricing each product at the same level. lowering the prices on both the products. Flag question: Question 5 Question 1 pts After firm A acquired firm B, it lowered the prices for the goods produced by both firms. This can increase profits if the goods are Group of answer choices substitutes. complements. not related. luxuries. Flag question: Question 6 Question 1 pts Owners of a parking lot are deciding whether or not to add more parking spaces to the lot. The owners should increase parking spaces as long as: Group of answer choices LRMR=LRMC LRMR>LRMC LRMR