Answer the following statements true (T) or false (F)
1) In general, if two stages in a supply chain are making an economic profit by setting prices that exceed their marginal cost of production, managers can increase profit through vertical integration.
2) Because vertical integration is a yes or no decision, managers cannot use marginal analysis.
3) If a firm has a monopoly in both the production and distribution, managers of the two divisions should be encouraged to maximize profits in their separate divisions.
4) If a firm has a monopoly in both the production and distribution, to maximize the overall economic profit of the firm, managers of either the production or distribution center should be instructed to maximize profit and the managers of the other center should be instructed to operate as a competitive market.
5) Vertical integration can eliminate double marginalization.
1) TRUE
2) FALSE
3) FALSE
4) TRUE
5) TRUE
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If a country moves from fixed to flexible exchange rates, its macroeconomic policy
A) is no longer restricted. B) is restricted, as it can only use fiscal policy to achieve its economic goals. C) is restricted, as it can only use monetary policy to achieve its economic goals. D) must follow policy directives from the IMF.
The financial burden entailed in the paying of a tax is known as the
a. incidence of the tax. b. impact of the tax. c. effect of the tax. d. shift of the tax.
The number of employed persons plus the number of unemployed persons equals the number of persons
A) in the total population. B) in the civilian noninstitutional population. C) in the civilian labor force. D) not in the labor force. E) none of the above
The following question relates to an oligopoly market where the industry demand curve is P = 100 - Q. Compare the models analyzed here with reference to the consumer and economic efficiency.
What will be an ideal response?