Which of the following would not limit the extent of a firm's vertical integration?
a. the managers' bounded rationality
b. a large minimum efficient scale of producing inputs relative to the firm's input requirements
c. the fact that the quality of inputs is easily determined at the time of purchase
d. many interchangeable suppliers of the firm's inputs
e. high transaction costs of contracting with resource suppliers
E
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Unions support minimum wage laws because an increase in the minimum wage
A) increases the supply of union labor. B) decreases the supply of union labor. C) increases the demand for union labor. D) decreases the demand for union labor.
The interest rate is 8 percent. The present value of $110 three years from now equals
A) $101.85. B) $94.31. C) $118.80. D) $128.30.
Use the following diagram to answer the next question.
Assume the economy is initially at the full employment level of real GDP. An increase in consumption will ________.
A. reduce the full employment level of real GDP B. reduce the unemployment rate C. reduce output in the economy D. reduce the price level
In the case of a negative externality,
A) marginal external costs are greater than marginal private costs. B) marginal external costs are less than marginal private costs. C) marginal external benefits are greater than marginal private benefits. D) marginal external benefits are equal to marginal private costs. E) none of the above