When a firm purchases a part of its supplies from any one of a large number of potential suppliers at the current market price without long-term commitments, it is:

A. making a spot market purchase.
B. integrating downstream.
C. practicing arbitrage.
D. integrating upstream.

Answer: A

Economics

You might also like to view...

If a competitive firm has to pay a lump sum tax, it will produce less

Indicate whether the statement is true or false

View
Economics

Total revenue minus only implicit costs is called

a. accounting profit. b. economic profit. c. opportunity cost. d. None of the above is correct.

View
Economics