Vertical integration is
a. the expansion of a firm into earlier or later stages of production
b. an attempt by a firm to allow market prices to coordinate more transactions
c. an attempt by a firm to minimize shirking
d. an attempt by a firm to minimize the need to coordinate transactions within its boundaries
e. a way for a firm to accumulate information about its competitors
A
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Restructuring is another word for deregulation
Indicate whether the statement is true or false
Refer to the above figure. For which Lorenz curve does the richest 40 percent make 50 percent of the nation's money income?
A) A B) B C) C D) D
For a monopolist, marginal revenue is
a. positive when the demand effect is greater than the supply effect. b. positive when the monopoly effect is greater than the competitive effect. c. negative when the price effect is greater than the output effect. d. negative when the output effect is greater than the price effect.
A decrease in firm 1's marginal cost will cause:
A. an upward shift in firm 2's reaction function, resulting in a new Cournot equilibrium where firm 1 is producing a lower quantity and firm 2 is producing a higher quantity. B. a downward shift in firm 2's reaction function, resulting in a new Cournot equilibrium where firm 1 is producing a higher quantity and firm 2 is producing a lower quantity. C. a downward shift in firm 1's reaction function, resulting in a new Cournot equilibrium where firm 1 is producing a lower quantity and firm 2 is producing a higher quantity. D. an upward shift in firm 1's reaction function, resulting in a new Cournot equilibrium where firm 1 is producing a higher quantity and firm 2 is producing a lower quantity.