Which of the following factors affect vertical integration of firms?
a. The demand for the final product in the market.
b. The market power of each firm in an industry.
c. The number of firms in an industry.
d. The transaction cost at each stage of production.
D
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Real income will rise from one year to the next if nominal income
A. rises and the price level rises faster. B. falls and the price level falls faster. C. falls faster than the price level. D. falls and the price level rises.
Refer to Table 4-1. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of one of the bottles is $95 dollars, total consumer surplus will be
A) $0. B) $35. C) $80. D) $95.
The determinants of labor demand include:
A. culture and other opportunities. B. supply of other factors and output prices. C. culture and technology. D. culture and population.