According to Alfred Chandler, large vertically integrated firms dominated much of American manufacturing in the early 1900s because
a. U.S. manufacturers sought to emulate the production practices of European manufacturers.
b. U.S. tax laws created strong incentives for vertical integration.
c. continuous-flow technologies were cost minimizing only when the inflow of inputs and the sale of outputs proceeded without interruption.
d. larger firms were better able to fight the establishment of labor unions and collective bargaining arrangements.
c. continuous-flow technologies were cost minimizing only when the inflow of inputs and the sale of outputs proceeded without interruption.
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When interest rate rise consumers will
A) compare loan payments with the desirability of goods in the future and increase consumption. B) compare loan payments with the desirability of goods today and increase consumption. C) wait to borrow funds when interest rates fall. D) none of above.
What is one reason activists might lobby the government to force firms to produce more output than they normally would in a perfectly competitive market?
A) They value consumer surplus more than producer surplus. B) They value producer surplus more than consumer surplus. C) They seek to avoid future regulation. D) They seek to minimize total surplus.
Private contracts between parties with mutual interests
a. will reduce the well-being of society. b. will lead to market outcomes in which the public interest is sacrificed for personal gain. c. can solve some inefficiencies associated with positive externalities. d. will create negative externalities.
In a well-functioning cap-and-trade system for pollution rights, society benefits because pollution will be brought down to insignificant levels.
a. true b. false