BP and Exxon both produce petroleum products and sell them at the wholesale and retail levels. One of them is also in the coal business. The merger of the two firms is an example of
a. horizontal integration.
b. vertical integration.
c. both horizontal and vertical integration.
d. a tournament.
c. both horizontal and vertical integration.
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When Dominant Pizza is willing to sell a pizza to a student who lives on-campus at a lower price than it sells the identical pizza to a student who lives a block away from the campus, the pizza firm is ________
A) practicing price discrimination B) unfair C) incurring a loss on on-campus sales D) eliminating all competition
Compared to the natives of Northern America, ownership of private property rights was
(a) more common to the Europeans than it was to the natives (b) more common to the Indians than to the Europeans. (c) the same. (d) of no value to either group.
In the midst of the Great Depression in 1932, Congress and the Hoover administration increased tax rates substantially. According to the Keynesian view, this tax increase was
a. inappropriate because it would depress economic activity and lead to further increases in unemployment. b. appropriate because it would lead to a significant increase in the money supply and, thereby, increase employment. c. inappropriate because it would decrease the money supply and, thereby, prolong the Depression. d. appropriate because it would stimulate economic activity and help end the Depression.
A new industry develops, and our government wants to protect it from foreign competition. Which one of the following arguments would appropriately describe this type of protection?
A) national security B) cartelization C) infant industry D) protecting American jobs