A merger of a firm and its supplier is called
A. a vertical merger.
B. a horizontal merger.
C. a conglomerate merger.
D. a direct merger.
A. a vertical merger.
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If quota rights accrue to foreigners, then _____.
A) the domestic economy is better off with a quota than with a tariff B) the domestic economy is worse off with a quota than with a tariff C) consumer surplus and economic welfare increase D) production costs decrease E) part of the decrease in consumer surplus is redistributed to the domestic government
What did the fiscal conservatives of the Eisenhower administration (1953–61) want?
(a) Balanced budgets and with manageable inflation (b) Inflation and budget surpluses (c) A balanced budget and high rates of interest (d) Laissez-faire economy
Economics is best defined as the
A) study of how people make choices to satisfy their wants. B) study of individual self-interests. C) study of how government can most efficiently raise funds by taxation. D) process by which goods are sold in free markets.
Suppose milk and cereal are compliments and the demand for milk is Qdm = 40 - 6Pm - 2Pc, where Qdm stands for millions of gallons of milk demanded, Pm stands for the price of milk and Pc stands for the price of cereal. The supply of milk is Qsm = 6Pm - 8, where Qsm stands for millions of gallons of milk supplied. The demand and supply of cereal are Qdc = 90 - 5Pc - Pm and Qsc = 5Pc - 10, respectively, where Qdc stands for millions of boxes of cereal demanded and Qsc stands for millions of boxes of cereal supplied. Which of the following gives the market-clearing curve for cereal?
A. Pc = 100 - (Pm/10) B. Pc = 8 - (Pm/10) C. Pc = 10 - (Pm/10) D. Pc = 10 + (Pm/10)