Some companies merge in order to lower costs through efficient joint production

a. True
b. False
Indicate whether the statement is true or false


True

Economics

You might also like to view...

Suppose the Fed purchases $1 million in bonds in the open market. Explain how the money supply can increase by more than $1 million

What will be an ideal response?

Economics

Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The price paid by buyers with the tax is:

A. $2.00. C. $2.50. D. $2.25.

Economics

A consumer values a car at $30,000 and a producer values the same car at $20,000 . If the transaction is completed at $24,000 . what level of sales tax will result in unconsummated transaction?

a. 0% b. 25% c. 20% d. 40%

Economics

Because a price floor causes:

A. a shortage, some form of rationing must occur. B. a surplus, some producers may ultimately lose because they won't have enough customers. C. a shortage, rent-seeking will occur. D. a surplus, everyone will be better off.

Economics