A vertical merger combines firms ______.
a. that sell similar products
b. at different stages of production
c. that are in different industries
d. into a conglomerate
b. at different stages of production
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BioMed Pharmaceutical has held a patent on an important heart medication called Heartex, but the patent will expire in the coming year. After the patent expires, other firms can legally sell the same medication as a generic drug product
What will happens to the demand for Heartex and to the Lerner index for this product as the generic drugs enter the market? A) Demand becomes less elastic, Lerner index increases B) Demand becomes less elastic, Lerner index declines C) Demand becomes more elastic, Lerner index increases D) Demand becomes more elastic, Lerner index declines
The activities of speculators often reduce the risk borne by other stock market participants
a. True b. False Indicate whether the statement is true or false
If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then
a. a one-unit increase in output will increase the firm's profit. b. a one-unit decrease in output will increase the firm's profit. c. total revenue exceeds total cost. d. total cost exceeds total revenue.
Which of the following is not a Central Bank:
(a) The European Central Bank. (b) Bank of England. (c) Bank of America. (d) Federal Reserve.