If a steel company and an ice cream company decide to merge, this merger would be classified as:
a. a horizontal merger.
b. a vertical merger.
c. a conglomerate merger.
d. either a horizontal or vertical merger, depending on the nationality of the companies.
e. either a horizontal or vertical merger, depending on the market shares of the two companies.
c
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In the figure above, suppose the economy is initially at point B. If people come to believe that the exchange rate will fall in the future, the supply of dollars ________ and the market moves to point such as ________
A) decreases; A B) decreases; E C) increases; D D) increases; C
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will type B individuals contribute per unit of flood control? a. 25 b. 50 c. 75 d. 100