Which of the following is true of vertical integration?
a. It leads to the formation of larger firms from smaller ones.
b. It occurs when a firm adds more layers of management.
c. It occurs when firms try to buy up their competitors and corner the market.
d. It has no effect on the internal organization of a firm; it only affects outside markets.
e. It occurs when a firm buys another firm in a completely unrelated market.
A
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What is the effect on aggregate supply and potential GDP of an increase in the money wage rate?
What will be an ideal response?
If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward, the equilibrium
A) price of bottled water definitely increases. B) price of bottled water definitely decreases. C) quantity of bottled water definitely increases. D) quantity of bottled water definitely decreases.
Define an efficient market
What will be an ideal response?
A perfectly inelastic supply curve
a. cannot exist b. is horizontal c. has an elasticity of 0 d. has an elasticity of 1 e. is vertical