Which of the following is true about vertical mergers?
a. It improves coordination among the individual firms in an industry.
b. It is an agreement among firms to follow a common pricing policy.
c. It increases the competitiveness of the merged firms.
d. It increases the market power of the merged firms.
C
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What is a Dutch auction?
What will be an ideal response?
If the aggregate price level at time t is denoted by Pt, the inflation rate from time t - 1 to t is defined as
A) ?t = (Pt - Pt - 1)/Pt - 1. B) ?t = (Pt + 1 - Pt - 1)/Pt - 1. C) ?t = (Pt + 1 - Pt )/Pt. D) ?t = (Pt - Pt - 1)/Pt.
Classical economists
a. argued that the money supply determined aggregate demand. b. regarded monetary policy as unimportant since the quantity of money does not determine the price level. c. believed that the quantity of money influences interest rates and real wages. d. believed that prices would increase more than proportionate to an increase in the money supply.
Every market exchange is a Pareto superior move
a. True b. False