Vertical relationships can increase profits through
a. preventing firms from evading regulation
b. eliminating a double-markup problem
c. making the incentives of manufacturers and retailers unaligned
d. preventing price discrimination
b
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The above table shows the distribution of income in two imaginary countries, Alpha and Beta
a) What does the table tell you about the second 20 percent group in each country? b) Calculate the cumulative percentage for both countries. c) Interpret the cumulative percentage for the third 20 percent group in both countries.
Under conditions of perfect competition, AR and MR
a. are represented by a straight vertical line. b. diverge. c. are represented by a straight horizontal line. d. are represented by an upward sloping line.
Natural resources include both plants and animals
Indicate whether the statement is true or false
The demand for money rises. According to the Keynesian transmission mechanism, the interest rate __________, investment spending __________ (assuming it is interest-sensitive), the AD curve shifts to the __________ and if the AS curve is horizontal, Real GDP __________
A) rises; falls; left; rises B) falls; rises; right; does not change C) rises; falls; right; rises D) falls; falls; left; does not change E) rises; falls; left; falls