Distinguish between a horizontal merger and a vertical merger
What will be an ideal response?
A horizontal merger is a merger between two firms selling a similar product. A vertical merger is a merger between two firms when one firm purchases the output of the other firm as an input.
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A firm calculated that the income elasticity of demand for its signature product was equal to (+)0.87. Based on this information, we can say that the firm's product is:
a. A substitute good b. A complementary good c. An inferior good d. A normal good
When the Fisher Effect holds, a one-percentage-point increase in the long-run money growth rate, because it ________ expected inflation, causes ________ in the nominal interest rate in the long run
A) equally lowers, a one-percentage-point decrease B) does not change, a one-percentage point decrease C) does not change, no change D) equally raises, no change E) equally raises, a one-percentage-point increase