The joining of a firm with another to which it sells an output or from which it buys an input is known as
A. economies to scale.
B. a conglomerate merger.
C. a horizontal merger.
D. a vertical merger.
Answer: D
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In economics, choosing one activity means:
A. choosing not to take advantage of another opportunity. B. people always act rationally. C. people signal they only like that activity. D. that activity must be observable to be studied.
A decrease in costs may not increase economic profit
Indicate whether the statement is true or false
The central reason why there are gains from international trade is because a. trading allows otherwise unemployed people to have jobs
b. the rate of interest is not the same in all countries. c. resources are not equally distributed to all nations. d. those nations with absolute advantages in producing many goods can produce all of those goods at lower opportunity costs than other countries.
In a two-country framework, if the opportunity cost of producing a good is equal in both countries, _____
a. trade will favor the country with better technology b. trade is not possible between the countries c. trade will be equally beneficial to both the countries d. trade will favor the country with a greater labor force