Author Question: A horizontal merger involves A) the joining of two firms at different stages of the production ... (Read 92 times)

jerry coleman · **on:** Jun 29, 2018

A horizontal merger involves

A) the joining of two firms at different stages of the production process.
B) the separation of management from ownership.
C) the joining of two firms selling similar products.
D) the exchange of debt for stock.

Question 2

How can we anticipate the proportion of a newly imposed unit excise tax that consumers will pay?

A) Consumers will pay most of the tax whenever their demand for a product is relatively unresponsive to price changes.
B) Consumers will always pay 100 percent of an excise tax.
C) Consumers will pay most of the tax whenever their demand for the product is very price sensitive.
D) Since producers always pay 100 percent of an excise tax, we know consumers will not pay any of the tax.