Suppose a parent company producing sportswear decides take back some formerly franchised outlets and operate them with its own employees. This form of vertical integration will allow the parent company:
a. to practice price discrimination.
b. to charge a uniform price for its products across the globe.
c. to lower its costs of operation and increase sales.
d. to test operating techniques that might make the franchisees bettor competitors.
D
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By the standard of low-grade bonds, interest rates were ________ and monetary policy was ________ during the Great Depression
A) low; tight B) low; easy C) high; tight D) high; easy
Based on the model of the money market, if the Federal Reserve increases the reserve requirement, the equilibrium interest rate should:
A. stay the same. B. increase. C. decrease. D. increase to the same extent that the demand for money increases.
The Volcker rule in the odd-Frank Act does which of the following?
A. Creates a host of new agencies to streamline the regulatory process B. Introduces significant regulation of hedge funds C. Increases oversight of specific institutions regarded as a systemic risk D. Forbids insured depositories from proprietary trading
Deregulation of the cable TV market by the Telecommunications Act of 1996 resulted in
A. Reductions in prices but little change in the level of service. B. Little change in either prices or service. C. Significantly higher prices. D. Lower prices and better service.