Question 30 Antitrust enforcement of vertical relationships is generally focused

Question

Question 30

Antitrust enforcement of vertical relationships is generally focused on

   The dominant firm using vertical contracts to extend market power to other levels of the supply chain

   Vertical contracts that increase the intensity of competition

   Vertical contracts that help consumers

   All of the above

Question 31

1 pts

Vertical contracts that aim to decrease retailer prices typically

   Benefit the consumer and the manufacturer but hurt the retailer

   Benefit the manufacturer and retailer but hurt the consumer

   Benefits the consumers, manufacturers and retailers

   Hurts all the manufacturers, consumers and retailers

Question 34

1 pts

Vertical integration can sometimes be used to

   Avoid paying higher taxes

   Reward the retailer for undertaking the risk inherent in introducing a new product

   Serve as a “signal” of the manufacturer’s belief of the likely success of his product

   All of the above

Question 35

1 pts

An acquisition will not be profitable

   In any circumstances

   As long as you paid lower than the company’s discounted future profits

   Without a synergy that makes the company more valuable to you than to the current owner

   None of the above

Question 38

1 pts

Purchasing a profitable supplier increases profit only if

   You pay equal to the value of the company’s inventory

   You pay higher than the value of the company’s future profits

   You pay lower than the value of the company’s discounted future profits

   You pay lower than the value of the company’s undiscounted future profits

Explanation / Answer

Question 30

Answer:

Vertical contracts that help consumers.

Question 31

Answer:

Question 34

Answer:

All of the above

Explanation: Vertical integration strategy is a strategy which operates at more than one level of the distribution channel. The distribution channel begins with the manufacturer that makes a product. The manufacturer sells the product to a wholesaler. The wholesaler sells to retailers, who ultimately sell to end customers. When a manufacturer sells directly to end customers, it is forward vertical integration. When a wholesaler or retailer manufacturers, it is backward vertical integration.

Avoid paying higher taxes

   Reward the retailer for undertaking the risk inherent in introducing a new product

   Serve as a “signal” of the manufacturer’s belief of the likely success of his product

   All of the above points are taken into consideration when integrating vertically

Question 35

Answer:

Without a synergy that makes the company more valuable to you than to the current owner.

Question 38

Answer:

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