Which of the Following in the Late 19ᵗʰ Century Was

question 30

Multiple Choice

Which of the following in the late 19ᵗʰ century was predicted by the firm-size hypothesis?

• A)Forward integration was most likely to occur for products that require specialized investments in human capital
• B)Increases in the size of manufacturing firms led to independent wholesale and marketing agents losing scale/scope cost advantages and in turn led to manufacturers forward integrating into marketing and distribution
• C)Forward integration was most likely to occur for products that do not require specialized investments in equipment and facilities
• D)For industries with small manufacturers,marketing relied on specialized assets
• E)For industries with small manufacturers,distribution relied on specialized assets

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Definitions:

Free-Trade Policy

A policy approach that encourages international trade by minimizing tariffs, duties, and other barriers to import and export.

World Price

The international market price of a good or service, determined by global supply and demand, which influences domestic prices and competition.

International Trade

The exchange of goods, services, and capital across international borders or territories, driven by economic motives like gaining access to new markets or acquiring resources.

Unilateral Approach

A strategy or action taken by a single nation or entity independently, without coordination with others.