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1. Find an example of a firm that would appear to use one product (good or service) to subsidize another. (This example should NOT be daycare, school/university, hospitals, AT&T monopoly, transportation)
1a. Provide the name of the firm and a general description of its product line. Answer in one sentence.
1b. Describe the product(s) that are involved in the cross-subsidy. Which products make money, and which products lose money? Answer in two or three sentences.
1c. What goal is most likely served by this cross-subsidy? Profit maximization or something else? Explain in one or two sentences.
1d. Is the firm vulnerable to entry by a competitor offering only the profitable product? Explain in one or two sentences.
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