A firm that has merged with many other firms producing a variety of goods unrelated to each other
a. faces higher risks than if it specialized in one and focused on it
b. increases its market share in the industry
c. cannot maximize profit although it does maximize sales
d. cannot survive in the long run
e. is a conglomerate
E
Economics
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The above figure shows the market for labor. The employer is a monopsony. The firm will not hire 800 hours of labor because at that point
A) VMP > MCL. B) VMP = MCL. C) VMP < MCL. D) VMP = W.
Economics
In the market for automobile insurance, moral hazard implies that
A) those who are insured might take greater risks. B) those who are uninsured might take greater risks. C) insured and uninsured alike will take greater risks. D) drivers with greater risks are more likely to buy insurance.
Economics