Vertical merger occurs when
A) two firms merge where one had sold its output to the other as an input.
B) the merger moves the combined firm onto the horizontal portion of its long-run average cost curve.
C) two firms merge where each is about the same size.
D) two firms producing a similar product merge.
A
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The difference between the simple Keynesian model and the IS-LM curve model is that the latter
a. excludes a money market and interest rates. b. includes a commodity market and flexible income. c. excludes a commodity market and interest rates. d. includes a money market and flexible interest rates.Figure 7-3
In the real world, countries use a mixture of the three basic types of economic systems
a. True b. False Indicate whether the statement is true or false
In which of the following situations would an individual experience an increase in real wages?
a. Receiving a 5 percent increase in nominal wages while inflation was 6 percent b. Taking a 3 percent cut in nominal wages while deflation was 4 percent c. Taking a 1 percent cut in nominal wages while inflation was 1 percent d. Receiving a 3 percent increase in nominal wages while inflation was 3 percent e. Receiving no increase in nominal wages while inflation was 0 percent
Suppose the cross-price elasticity of demand between peanut butter and jelly is -2.50 . This implies that a 20 percent increase in the price of peanut butter will cause the quantity of jelly purchased to
a. fall by 8 percent. b. fall by 50 percent. c. rise by 8 percent. d. rise by 50 percent.