The Manager of Steel Works Learns of a New Technological

question 75

Multiple Choice

The manager of Steel Works learns of a new technological interdependency between the final stage of production and the distribution of the final product. Steel Works currently contracts with another firm to distribute the product. If Steel Works vertically integrates with the distributor firm, which of the following is true?

• A)Steel Works is likely to incur managerial diseconomies as a result of an increase in the complexity of the firm.
• B)With certainty, the combined firm will earn greater economic profits.
• C)Steel Works will automatically create an internal successive monopoly.
• D)Steel Works will not incur managerial diseconomies.

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Definitions:

Wear-And-Tear Theory

A view of aging as a process by which the human body wears out because of the passage of time and exposure to environmental stressors.

Hayflick Limit

The maximum number of times a normal human cell population can divide until division stops, attributed to cellular aging.

Genetic Clock

A mechanism within organisms that regulates timing of biological functions and aging, often influenced by genetic and environmental factors.

Genetic

Relating to genes or heredity, often used to describe traits or conditions that are passed from parents to offspring through DNA.