Microeconomics
Microeconomics
How might you determine whether toothpaste manufacturers and mouthwash manufacturers are competitors?
Explain how to determine if the toothpaste manufactures and mouthwash manufactures are competitors.
The cross elasticity can be used to determine whether the toothpaste manufactures and the mouthwash manufactures are competitors or not. If the value of cross elasticity is less than zero, then it indicates the negative relation between the quantity demanded of toothpaste and the price of mouthwash. Then, the goods are complements...
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