The manager of Steel Works learns of a new technological interdependency between the intermediate stage and the final stage of production. If Steel Works currently contracts with another firm for the intermediate stage of production, which of the following is true?
A) The manager has less of an incentive to integrate backward.
B) The manager has more of an incentive to integrate backward.
C) The manager has more of an incentive to integrate forward.
D) The manager has less of an incentive to integrate forward.
B) The manager has more of an incentive to integrate backward.
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A higher real interest rate ________ saving and ________ consumption spending.
A. increases; decreases B. increases; increases C. does not change; does not change D. decreases; increases
In the above figure, the short-run aggregate supply curve is SAS1. If the money wage rate increases, there is
A) an upward movement along SAS1. B) a downward movement along SAS1. C) a shift to SAS0. D) a shift to SAS2.
Explain the total revenue test
What will be an ideal response?
There are 10 identical internet service providers (ISPs) in a city serving a market demand with an elasticity of -1.5. The elasticity of supply for each firm is 3.0. The elasticity of demand faced by an individual ISP is
A) -42. B) -15. C) -1.5. D) -27.