A merger of firms with a supplier is a:
a. vertical merger.
b. conglomerate merger.
c. monopoly merger.
d. horizontal merger.
a
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The finding that U.S. exports tend to come from labor-intensive industries, while U.S. imports are produced using relatively capital intensive techniques is known as
A) the Leontief paradox. B) the balance of trade enigma. C) the Heckscher-Ohlin paradox. D) the Krugman finding.
The demand curve for any input is the downward-sloping portion of its marginal revenue product curve
a. True b. False Indicate whether the statement is true or false
Nevada is the low opportunity cost producer of computer software, and California is low opportunity cost producer of wine. Which of the following is true?
a. Nevada has no comparative advantage over California in the production of wine or computer software. b. Nevada has a comparative advantage in producing wine c. Nevada has a comparative advantage in producing software. d. Nevada has a comparative advantage in producing both wine and software.
A monopolist earns $80 million annually and will maintain that level of profit indefinitely, provided no other firm enters the market. If another firm successfully enters the market, the incumbent's profits remain at $80 million the first period but fall to $35 million annually thereafter. The opportunity cost of funds is 20 percent, and profits in each period are realized at the beginning of each period. What is the present value of the firm's current and future earnings if entry occurs?
A. $280 million B. $400 million C. $350 million D. $255 million