If a firm decides to produce a product that it once purchased from a firm upstream it has made a
A) horizontal decision.
B) make or buy decision.
C) downstream decision.
D) sell or service decision.
B
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The above figure shows the market for winter jackets. In an effort to keep the nation warm, the president places a price ceiling of $100 in the market for winter jackets. Which of the following statements is true?
A) After taking account of the resources lost in search, consumer surplus increases when the price ceiling is in place. B) There will be a surplus of jackets. C) Because the price of a jacket is lowered, consumers end up buying more jackets with the price ceiling than without it. D) Producer surplus decreases if there is a price ceiling. E) The quantity supplied of jackets is greater that quantity demanded when there is a price ceiling.
The future value of a sum of money deposited in a bank will be higher if ________
A) the rate of interest is low B) the rate of inflation is low C) the returns on other assets are low D) the money is kept in the bank for a longer period of time
When the value of a currency is determined ________, the exchange rate system is defined as a floating exchange rate system
A) by its issuing government, with occasional readjustments in value B) only by supply and demand C) by its issuing government D) mostly by supply and demand, but with occasional government intervention
A best response function:
A. is also known as a strategic demand function. B. is upward-sloping if free riding occurs. C. shows the relationship between a player's choice and another player's best response. D. plots all of the Nash equilibriums in a game.