Multiple Choice
Which of the following is most likely to be true of economic and accounting profits?
19
views
0. Basic Principles of Economics
Introduction to Economics
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which term refers to a company that is involved in more than one activity in the value chain?
A
Monopolistic
B
Perfectly competitive
C
Price taker
D
Vertically integrated
Verified step by step guidance1
Understand the concept of the value chain, which includes all the activities a company undertakes to bring a product from conception to delivery and beyond.
Recognize that a company involved in more than one activity within this chain is managing multiple stages, such as production, distribution, or retail.
Recall that the term for a company operating across multiple stages of the value chain is 'vertically integrated.'
Differentiate this from other market structures or terms: 'Monopolistic' refers to a market with differentiated products, 'Perfectly competitive' describes many firms with identical products, and 'Price taker' is a firm that accepts market prices without influence.
Conclude that the correct term for a company involved in multiple value chain activities is 'vertically integrated.'
Related Videos
Related Practice
Introduction to Economics practice set
Problem sets built by lead tutorsExpert video explanations