A "vertically integrated firm" is a firm that
a. combines firms which formerly competed.
b. manages all stages of production, from the production of raw materials to the marketing of the final product, within the firm.
c. earns zero economic profits due to the highly competitive market within which it operates.
d. has representatives on its board of directors from many of the companies that it buys from and sells to.
b. manages all stages of production, from the production of raw materials to the marketing of the final product, within the firm.
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Suppose the government imposes a $1 tax on frisbees, and the price of a frisbee paid by demanders rises by $1
A) The price rise is consistent with a perfectly elastic supply for frisbees. B) The price rise is consistent with a perfectly elastic demand for frisbees. C) The price rise is consistent with a downward-sloping supply curve for frisbees. D) The price could never rise this much, so this situation cannot happen.
Ben is a chicken farmer and is in a market that has no product differentiation. We know that for Ben's firm, its demand curve is not the market demand curve
a. although both are downward sloping b. and its price is greater than its marginal revenue c. and it is a price taker d. and is not downward sloping e. and it is a price maker