A vertical merger involves a combining of one or more firms:
A. as the result of one firm purchasing the assets of the other.
B. that are operating in entirely different industries.
C. operating at different stages of the production process in a particular industry.
D. operating at the same stage of the production process.
Answer: C
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Refer to Figure 4.1. Suppose Alvin chooses Top, while Simon chooses Down, and Theodore chooses Left. Theodore's payoff will be
A) 4. B) 6. C) 14. D) 24.
Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000. What is her economic profit?
A) $12,000 B) $56,000 C) $86,000 D) $98,000
Which of the following statements about exchange is false?
a. The expectation of gain motivates people to engage in trade. b. If a party to a potential exchange does not believe that it will lead to personal gain, he or she can chose not to engage in the trade. c. Voluntary exchange is generally mutually beneficial to the trading partners. d. If one trading partner gains, the other must lose.
The Four Tigers include
a. Hong Kong and Singapore b. Japan and Malaysia c. China and Japan d. South Korea and Taiwan e. Both a and d are correct