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.
Answer: A
Economics
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International trade is based on the existence of
A) absolute advantage. B) perfect advantage. C) productivity advantage. D) comparative advantage.
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The price elasticity of demand for eggs is 0.27. Therefore, an increase in the price of eggs will cause:
A. a decrease in egg suppliers' total revenue. B. an increase in the demand for eggs. C. an increase in egg suppliers' total revenue. D. an increase in the quantity demand of eggs.
Economics