Vertical integration can reduce transaction costs through all of the following ways except which one?
A) decreasing the incentive for litigation
B) creating managerial diseconomies
C) establishing a partnership between the two firms
D) increasing information and control
B) creating managerial diseconomies
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Claude's Copper Clappers sells clappers for $40 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $39, average variable cost is $25, and average total cost is $45 . To improve his profit/loss situation, Claude should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price
A company can protect itself from the opportunity cost of rising rents in an area by buying its own building
a. True b. False Indicate whether the statement is true or false
Developing countries can be expected to have a comparative advantage in industries requiring a relatively large amount of skilled labor
a. True b. False Indicate whether the statement is true or false
If the CPI in 2015 was 114.7 and the CPI in 2016 was 124.5, then the rate of inflation between 2015 and 2016 was
A. 7.9%. B. 8.5%. C. 9.8%. D. 14.7%.