When Two or More Firms Agree to Work Together and Create

question 60

Multiple Choice

When two or more firms agree to work together and create a joint owned firm to promote mutual interest, ________ has occurred.

• A) an acquisition
• B) a joint venture
• C) a licensing agreement
• D) a franchise agreement

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Definitions:

Aggregate Supply Curve

A visual depiction that illustrates the overall amount of products and services that producers in an economy can and are willing to offer across various price points.

Aggregate Demand Curve

A curve that shows the total demand for goods and services within an economy at various price levels, typically illustrating an inverse relationship between price level and output demanded.

Aggregate Supply

The total supply of goods and services that firms in a national economy plan on selling during a specific time period.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, affecting purchasing power and inflation.