Identify the type of merger in each of the following situations and indicate how the post-merger concentration ratio for the industry is affected
a. A steel company merges with a coal and iron ore mining company.b. Staples, a retailer of office supplies, acquires Office Depot, another retailer of office supplies.c. An oil company merges with pipeline, shipping, and railroad companies as well as refineries and gas stations.
a. This would be a vertical merger; the concentration ratio of the steel industry is not likely to change.
b. This is a horizontal merger; the concentration ratio would increase.
c. This is a vertical merger; the concentration ratio for the oil industry is not likely to change.
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In the figure above, an increase in the quantity of oil supplied but NOT an increase in the supply of oil is shown by a movement from
A) point a to point e. B) point a to point b. C) point a to point c. D) point a to point d.
Economics is a part of the
A) social sciences. B) natural sciences. C) biological sciences. D) organizational sciences.
Answer the following statements true (T) or false (F)
1. Economics is the social science concerned with the best use of scarce resources to achieve maximum satisfaction of economic wants. 2. Marginal analysis is the valuation of insignificant or small benefits from doing things. 3. Rational behavior implies that different people faced with similar choices will make the same decisions. 4. Economic analysis is primarily concerned with marginal changes from the status quo, as a result of a certain action or decision.
What type of relationship does the law of demand demonstrate?
A) direct B) positive C) inverse D) static