Identify the type of merger in each of the following situations and indicate how the post-merger concentration ratio for the industry is affected
a. A steel company merges with a coal and iron ore mining company.b. Staples, a retailer of office supplies, acquires Office Depot, another retailer of office supplies.c. An oil company merges with pipeline, shipping, and railroad companies as well as refineries and gas stations.
a. This would be a vertical merger; the concentration ratio of the steel industry is not likely to change.
b. This is a horizontal merger; the concentration ratio would increase.
c. This is a vertical merger; the concentration ratio for the oil industry is not likely to change.
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Which of the following is true about the fish market-day?
a. The quantity supplied of fish increases as price increases. b. The quantity supplied of fish decreases as price increases. c. The quantity supplied of fish does not change regardless of price. d. The quantity supplied of fish will adjust with changes in demand. e. The quantity supplied of fish decreases as price decreases.
The difference between the sale value of the product and the value of the inputs that went into it is called the:
A. value-added of that stage of production. B. value of the final product. C. profit margin. D. mark up.