The manager of Slick Lens, a sunglasses manufacturer, notices that the cost to purchase lenses for their sunglasses in the spot market has increased. As a result of the change, which of the following is true?
A) The manager has more of an incentive to integrate backward.
B) The manager has less of an incentive to integrate backward.
C) The manager has more of an incentive to integrate forward.
D) The manager has less of an incentive to integrate forward.
A) The manager has more of an incentive to integrate backward.
You might also like to view...
Tying arrangements that lessen competition were made illegal by
A) the Sherman Anti-Trust Act. B) the Clayton Act. C) the Celler-Kefauver Act. D) the Robinson-Patman Act.
Which of the following is not an example of a failure of market outcome?
A. A person with a gun offers you your life for your money. B. Emission of pollutants is producing acid rain and killing wildlife. C. Addicts continue to use heroin even though they would be better off without it. D. Income is not distributed in a way society wants.
Real domestic investment spending is
A. negatively related to the level of interest rates in the economy. B. positively related to government spending. C. negatively related to the exchange rate. D. positively related to the marginal propensity to consume.
One way a monopoly can convert additional consumer surplus into economic profit is to
A) lower prices. B) raise prices. C) price discriminate. D) become more competitive. E) produce where price equals average total cost.