Eco 365 Week 4 Knowledge Check Essay

681 WordsNov 18, 20143 Pages
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

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