The manager of Steel Works learns of a new technological interdependency between the final stage of production and the distribution of the final product. If Steel Works currently contracts with another firm to distribute the product, which of the following is true?
A) The manager has less of an incentive to integrate forward.
B) The manager has more of an incentive to integrate forward.
C) The manager has more of an incentive to integrate backward.
D) The manager has less of an incentive to integrate backward.
B) The manager has more of an incentive to integrate forward.
You might also like to view...
The "invisible hand" using Adam Smith's terminology refers to
a. government control of the market. b. market forces working through the price mechanism. c. the money supply that serves to keep the economy working smoothly. d. the role of innovation in maintaining a steady rate of growth. e. "behind-the-scenes" policy making to influence how markets allocate scarce resources.
The permanent income hypothesis implies that the effect of a temporary tax cut on economic activity
A. is the same as the effect of a permanent tax cut. B. is greater than the effect of a permanent tax cut. C. is smaller than the effect of a permanent tax cut. D. can be greater than or smaller than the effect of a permanent tax cut, depending on how the tax cut affects the government.
Soldiers in a World War II prisoner-of-war camp
A) used gold as a fiat money. B) used cowrie shells as money. C) used cigarettes as money. D) used U.S. dollars as a commodity money.
Refer to Scenario 7.6 below to answer the question(s) that follow. SCENARIO 7.6: Upon graduating with an accounting degree, you open your own accounting firm of which you and your assistant are the only employees. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $50,000 annually. Last year you earned a total revenue of $120,000. Rent and supplies last year were $50,000. Your assistant's salary is $30,000 annually.Refer to Scenario 7.6. Your annual economic profit is
A. -$10,000. B. $20,000. C. $40,000. D. $70,000.