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:

Disease Patterns

The characteristic ways in which diseases develop and progress over time, including how they are spread, their prevalence, and their impact on populations.

Standard Precautions

A set of infection control practices used to prevent transmission of diseases that can be acquired by contact with blood, body fluids, non-intact skin, and mucous membranes.

Infectious Diseases

Disorders caused by pathogens such as bacteria, viruses, fungi, or parasites that can spread, directly or indirectly, from one individual to another.

Broad-spectrum Antibiotics

Antibiotics that are effective against a wide range of both gram-positive and gram-negative bacteria.