A merger between one firm and another firm that is its supplier is known as a:
A. Horizontal merger
B. Vertical merger
C. Conglomerate merger
D. Parallel merger
B. Vertical merger
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Increasing marginal returns to labor might occur at low levels of labor input because of
A) increasing average costs. B) differing factor proportions. C) increasing specialization of tasks. D) decreasing use of machinery and increasing use of technology.
A market with one or a small number of firms but no barriers to entry is known as
A) a natural monopoly. B) a contestable market. C) a perfectly competitive market. D) monopolistic competition.
A speculative attack involves massive sales of a currency or purchases of a currency that cause a sharp change in the exchange rate under a exchange rate system
A) weak; strong; fixed B) strong; weak; fixed C) weak; strong; floating D) strong; weak; floating
State whether each condition is consistent with profit maximization or if production should increase or decrease.
