Author Question: Suppose a company that produces mouthwash branches out into producing toothpaste. If this expansion ... (Read 57 times)

rosent76 · **on:** Jun 30, 2018

Suppose a company that produces mouthwash branches out into producing toothpaste. If this expansion reduces the average cost per unit, the company must
a. benefit from vertical integration
b. benefit from horizontal integration
c. experience economies of scale
d. experience economies of scope
e. have no transaction costs

Question 2

Under the Bretton Woods agreement,
a. nations could not adjust their exchange rates relative to the dollar for any reason
b. exchange rates were based on a market basket of European currencies plus the dollar
c. the United States stood ready to convert foreign holdings of dollars into gold at a fixed rate of 35 per ounce
d. the international monetary system operated exactly like the gold standard of pre-World War II years
e. gold played no role in the international monetary system