An Automobile Manufacturer Acquires a Rental Car Company

question 31

Multiple Choice

An automobile manufacturer acquires a rental car company.This is an example of

• A) backward integration.
• B) forward integration.
• C) economies of scale.
• D) product differentiation.

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Definitions:

Short-run Supply Curve

Shows the relationship between the price of a good and the quantity supplied over a short period, when at least one input is fixed.

Minimum Point

The point at which a function reaches its smallest value, often used in the context of costs or optimization problems.

Short Run

A period of time during which at least one input of production is fixed, affecting the firm's ability to adjust production levels.

Variable Cost

A cost that depends on the quantity of output produced; the cost of a variable input.