Vertical integration can reduce transaction costs through all of the following ways except which one?
A) establishing a partnership between the two firms
B) decreasing search costs
C) decreasing the incentive for litigation
D) increasing the required areas of managerial expertise
D) increasing the required areas of managerial expertise
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Unemployment that arises from a lack of skills is known as ________
A) seasonal unemployment B) cyclical unemployment C) discouraged unemployment D) structural unemployment
Is the firm a perfect competitor or an imperfect competitor? Explain.
A carbon tax placed on coal:
A. would decrease the price of coal. B. would cause some producers of goods and services, like cars, to switch to other forms of energy. C. is unlikely to affect the demand for alternative forms of energy. D. would increase the quantity of coal demanded at every price.
Recall the Economics in Practice on p. 371: According to a study discussed in the Economics in Practice, ________ matters in terms of an individual's future earnings.
A. teacher quality B. the gender of teachers C. the age of teachers D. class size