If a steel company and an ice cream company decide to merge, this merger would be classified as:
a. a horizontal merger.
b. a vertical merger.
c. a conglomerate merger.
d. either a horizontal or vertical merger, depending on the nationality of the companies.
e. either a horizontal or vertical merger, depending on the market shares of the two companies.
c
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The main difference between the short run and the long run is that:
A) in the short run all inputs are fixed, while in the long run all inputs are variable. B) in the short run the firm varies all of its inputs to find the least-cost combination of inputs. C) in the short run, at least one of the firm's input levels is fixed. D) in the long run, the firm is making a constrained decision about how to use existing plant and equipment efficiently.
A good is most likely to be inefficiently priced if
a. some of the resources used in its production are scarce. b. the good is private property. c. some of the resources used in its production are free. d. a corporation produces the good.
In the circular flow diagram saving
a. is a leakage and investment is an injection. b. and investment are both injections. c. is an injection and investment is a leakage. d. and investment are both leakages.
Which of the following is NOT true about indifference curves?
A) Indifference curves slope downward. B) Indifference curves show equally preferred combinations of two goods. C) Indifference curves are not straight lines because the marginal rate of substitution falls. D) Indifference curves shift when prices change.