Vertical relationships can increase profits through
a. providing a mechanism for firms from evading regulation
b. creating a double-markup problem
c. making the incentives of manufacturers and retailers unaligned
d. preventing price discrimination
a
You might also like to view...
Which of the following statements concerning the federal corporate income tax is true?
A) It is an efficient tax because it imposes a small excess burden relative to the tax revenue it raises. B) The corporate income tax is an example of the benefits-received principle. C) The incidence of the corporate income tax can be determined by using demand and supply analysis. D) Determining the incidence of the corporate income tax is complicated because it is not certain how corporations respond to the tax.
Minimum wages are the predominant reason for unemployment in the U.S. economy
a. True b. False Indicate whether the statement is true or false
According to the Stolper-Samuelson theorem and the Heckscher-Ohlin theory, the opening of trade will ultimately lead to lower real wages in a land-abundant country.
Answer the following statement true (T) or false (F)
Answer the question on the basis of the following balance of payments data for the hypothetical nation of Econland. All figures are in billions of dollars.
(1) Goods exports +$220 (2) Goods imports -328 (3) Exports of services +54 (4) Imports of services -55 (5) Net investment income +18 (6) Net transfers -11 (7) Capital account -1 (8) Foreign purchases of Econland assets +124 (9) Econland purchases of foreign assets -21 Refer to the table above. Econland's balance on the current account shows a: A. Deficit of $91 billion B. Deficit of $102 billion C. Deficit of $109 billion D. Surplus of $109 billion