Ray's Radios believed the synergies between radio production and battery production could be realized if he expanded. However, due to overseeing the battery expansion Ray devoted less time to the radio business leading to the radio unit costs increasing. At this point, Ray's Radios should
a. Increase production of the batteries
b. Divest itself from the production of the batteries
c. Shut down the production of the batteries
d. None of the above
c
Economics
You might also like to view...
If money demand is not responsive to changes in interest rates, then
a. the LM curve is vertical. b. the IS curve determines equilibrium output. c. the LM curve will become horizontal. d. the LM curve will become vertical. e. a and b.
Economics
When the economy is on the flatter part of the short run aggregate supply curve, efforts to change inflation with monetary policy will be ____ successful and efforts to stimulate the economy will be ____ successful
a. More; more b. More; less c. Less; more d. Less; less
Economics