Author Question: What is the profit maximizing condition for a vertically integrated firm? A) Net marginal revenue ... (Read 71 times)

washai · **on:** Jul 1, 2018

What is the profit maximizing condition for a vertically integrated firm?

A) Net marginal revenue equals the sum of the marginal costs of the intermediate inputs.
B) Marginal revenue equals the marginal cost of the final output.
C) Net marginal revenue equals the marginal cost of each intermediate good.
D) The sum of net marginal revenues equals the marginal cost of the final output.

Question 2

In the dominant firm model, the smaller fringe firms behave like:

A) competitive firms.
B) Cournot firms.
C) Stackelberg firms.
D) Bertrand firms.
E) monopolists.