A vertical merger, like the merger of Seagate and Dell, would be attractive
a. only to Dell because it then avoids paying monopoly prices to Seagate.
b. only to Seagate because it can then obtain two monopoly rents.
c. to both Seagate and Dell but not to consumers who would find no difference in their welfare.
d. to Seagate, Dell and consumers, all of whom would stand to benefit in some way.
d. to Seagate, Dell and consumers, all of whom would stand to benefit in some way.
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If Arnold has a positive rate of time preference, he desires to
a. save in case of inflation b. consume now rather than later c. invest in stocks and bonds d. invest in education e. plan for retirement
Why do the United States and the European Union governments apply tariffs to solar panel imports, even though solar panels generate positive consumption externalities?
a. They believe that imported solar panels' negative consumption externalities outweigh their positive consumption externalities. b. They believe that domestic production of solar panels generates negative production externalities that outweigh the positive consumption externalities from imports. c. They believe that domestic production of solar panels generates positive production externalities that outweigh the positive consumption externalities of imports. d. They believe that imported solar panels negative production externalities outweigh their positive consumption externalities.
If the euro becomes an international reserve currency, the EU may enjoy:
A. interest-free loans that finance trade deficits. B. high-interest loans that promote trade surpluses. C. interest-free loans that promote trade surpluses. D. high-interest loans that finance trade deficits.
Could the advent of the internet completely eliminate frictional unemployment?
What will be an ideal response?