www.StudentWhiz.com
Questions to ECO 365 Week 4 Knowledge Check are as follow:
1. What do economists mean when they say there is "market failure"?
• Business has introduced a product that consumers did not want.
• Free markets have led to excessive profits.
• Markets have surpluses or shortages so that government rationing is necessary.
• Free markets yield results that economists do not consider socially optimal.
2.If a market has no externalities, marginal private costs
• exceed marginal social costs
• equal marginal social costs
• are below marginal social costs
• intersect marginal social costs
3.Economists generally call the effect of an agreement on others that is not taken into account by the parties making the agreement
• an externality
• welfare loss
• Pareto optimality
• excess burden
Click here to download ECO 365 Week 2 Learning Team Reflection Production and Cost Analysis
4.The size performance improvements sought by those pursuing horizontal mergers is
• economies of scale
• increased market share
• to coordinate activities more efficiently to spur growth
• to decrease competition
5.A company buys another company in the same supply chain, but either in front of it or behind it in the supply chain. This is called
• a horizontal acquisition
• a vertical acquisition
• a conglomerate
• a joint venture
6.Sony and Toshiba become partners in a microprocessor manufacturing company. This is called
• a horizontal acquisition
• a vertical acquisition
• a conglomerate
• a joint venture
7.If two companies share ownership in a venture and agree on a formal management structure including members of both companies,this is called a
• horizontal acquisition
• vertical acquisition
• joint venture
• conglomerate
8.Two companies come together to take on a project that has an explicit time cycle and ending point. The most efficient form of acquisition of this project is
• a horizontal acquisition
• a joint venture
• a vertical...