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Home / Questions / the industry is rapidly converging into a monopolistically competitive industry d.all fir

the industry is rapidly converging into a monopolistically competitive industry d.all fir

the industry is rapidly converging into a monopolistically competitive industry

d.all firms have near-equal market shares

e.the four-firm concentration ratio exceeds 100 percent

32.              A merger between two firms occurs when

a.two firms agree to work temporarily on a single project, which is why we constantly
read about mergers occurring and splitting up

b.one firm splits into two or more firms, such as General Motors splitting into divisions
of Buick, Pontiac, and so on

c.each of the two firms agrees not to sell in each other’s markets

d.the two firms become one firm, as in the newspaper industry when the Chicago Sun
and the Chicago Times became the Chicago Sun-Times

e.one firm quits the industry and another takes over its market share

33.              A horizontal merger between two firms occurs when

a.the goods produced by the merging firms are not related

b. one firm produces goods while the other produces services

c.  one firm is a domestic firm and the other is a foreign firm

d.  the firms were in a buyer-seller relationship before the merger

e.  the merging firms produce identical or close substitute goods

34.              If two steel firms merge, the merger is described as

a.a horizontal merger

b.a vertical merger

c.a conglomerate merger

d.either a vertical or conglomerate merger depending on whether the oligopoly is
balanced or unbalanced

e.either a vertical or conglomerate merger depending on the number of steel firms in
the steel industry

35.              According to the text, all of the following are reasons for firms to merge except

a.to exercise greater market control

b.to increase control over suppliers of their inputs

c.to increase control over buyers of their products

d.to diversify assets

e.to form a cartel

36.              According to the text, which of the following is a principal reason why firms merge?

a.to form a cartel

b.to exercise greater market control

c.to increase their product differentiation

d.to decrease their product differentiation

e.to become a monopoly

37.              A vertical merger occurs when

a.the goods produced by the merging firms are not related

b.one firm produces goods while the other produces services

c.one firm is a domestic firm while the other is a foreign firm

d.the firms are in a buyer-seller relationship

e.the merging firms produce identical or close substitute goods

38.              A good example of _________ is the merger between a steel firm and a cookware firm.

a.a horizontal merger

b.a vertical merger

c.a conglomerate merger

d.either a horizontal or conglomerate merger, depending on whether the oligopoly is
balanced or unbalanced

e.either a horizontal or conglomerate merger, depending on the market shares of the
two firms

39.              A conglomerate merger occurs when

a.the goods produced by the merging firms are not related

b.one firm produces goods while the other produces services

c.one firm is a domestic firm while the other is a foreign firm

d.the firms are in a buyer-seller relationship

e.the merging firms produce identical or close substitute goods

40.              A good example of _______ is the merger between a steel firm and an ice cream firm.

a.a horizontal merger

b.a vertical merger

c.a conglomerate merger

d.either a horizontal or vertical merger, depending on whether the oligopoly is balanced
or unbalanced

e.either a horizontal or vertical merger, depending on the market shares of the two
companies

Dec 12 2019 View more View Less

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