The Manager of Slick Lens, a Sunglasses Manufacturer, Notices That

question 26

Multiple Choice

The manager of Slick Lens, a sunglasses manufacturer, notices that the cost to distribute their sunglasses in the spot market has fallen. As a result of the change, which of the following is true?

• A)The manager has more of an incentive to integrate backward.
• B)The manager has less of an incentive to integrate backward.
• C)The manager has less of an incentive to integrate forward.
• D)The manager has more of an incentive to integrate forward.

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Definitions:

Testator

One who makes a valid will.

Maker Of A Will

Person who creates a legal document that outlines how their property should be distributed upon their death.

Perfect Substitutes

Goods or services that can be used in place of each other with no loss of utility to the consumer.

Perfect Complements

Two goods for which the Marginal Rate of Substitution (MRS) is zero or infinite; the indifference curves are shaped as right angles.