What are the advantages of vertical integration?
By putting activities under the same management, vertical integration can reduce risks of opportunistic behavior by people who control specific assets. These risks are greater in thin markets, where few alternative assets or supplies are available.
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The table above gives Cathy's total utility from Mt. Dew. If the price of a Mt. Dew is $1.50, Cathy's marginal utility per dollar from the 4th Mt. Dew is ________ units per dollar
A) 15 B) 10 C) 82.5 D) 22.5
The moral-hazard problem and the desire of firms to lessen that problem serve as a plausible explanation for a firm paying above-equilibrium wages to its workers
a. True b. False Indicate whether the statement is true or false
Which of the following is considered investment?
A. the purchase of IBM stock B. the acquisition of capital goods C. the purchase of government bonds D. the sale of foreign currency
Real GDP decreases during
A) the movement from trough to peak. B) the movement from below potential GDP back to potential GDP. C) the movement from peak to trough. D) a decrease in unemployment.