Author Question: Which of the following factors affect vertical integration of firms? a. The demand for the final ... (Read 31 times)

future617RT · **on:** Jun 30, 2018

Which of the following factors affect vertical integration of firms?
a. The demand for the final product in the market.
b. The market power of each firm in an industry.
c. The number of firms in an industry.
d. The transaction cost at each stage of production.

Question 2

If a profit-maximizing monopolistic competitor earns positive economic profits in the short run:
a. demand will become increasingly inelastic as new firms enter.
b. the firm should increase its output as new firms enter.
c. there must be barriers to entry into the industry.
d. new firms will be attracted to the industry.
e. both b. and d. are correct.