When Apple, Inc

question 95

Multiple Choice

When Apple, Inc. opened retail stores to sell its computers and iPods, this was an example of

• A) forward vertical integration.
• B) backward vertical integration.
• C) forward horizontal integration.
• D) backward horizontal integration.

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Definitions:

Short Run

A period in economics where at least one input is considered fixed in the production process.

Natural Monopoly

A market condition where a single firm can provide a good or service at a lower cost than any potential competitor, often due to economies of scale.

Fair Return

A reasonable profit for a business, considered equitable for both the business owners and consumers, typically governed by regulatory strategies.

Average Total Cost

The total cost divided by the number of goods produced, indicating the per unit cost of production.