Answer: positive cross elasticity of demand.
Explanation: In simple words, cross elasticity refers to the degree of change in the demand of a good with respect to change in the price of another goods.
In case of substitute goods, one good can easily be used in the place of another good. Thus, if the price of one good increases the demand for its substitute good also increases.
Hence from the above we can conclude that substitute goods have positive cross elasticity.
Answer:
c. allows a foreign firm to purchase the right to manufacture and sell a firm's products within a host country.
Explanation:
- The licensing agreement is a legal contract between the parties knows as licensor and the licensee, where the licensor allows for the sales of the goods and to apply the brand name of the product or use the patent technology.
- As it usually refers to a written contract and the payment s termed as loyalty. Any failure to follow the agreement may lead to the termination of the license and the payments.
Answer:
The answer and procedures of the exercise are attached in a microsof excel document.
Explanation:
After a research on internet I found the exercise and the questions better explained. The correct formulation is attached as an image. Please let me know that we are looking to the same exercise.
Please consider the data provided by you. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
