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VERTICAL MERGER: The consolidation under a single ownership of two separately-owned businesses that have an input-output relationship, in which the output of one firm is the input of another. An example of a vertical merger would be a soft drink company merging with a sugar company to form a single firm. A vertical merger should be contrasted with horizontal merger--two competing firms in the same industry that sell the same products; and conglomerate merger--two firms in totally, completely separate industries.

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Lesson 7: Market | Unit 2: The Numbers Page: 8 of 22

Topic: Equilibrium <=PAGE BACK | PAGE NEXT=>

What would happen if buyers and sellers faced a price of 50 cents?
  • At 50 cents, the quantity demanded is 400 tapes.
  • At 50 cents, the quantity supplied is 400 tapes.
  • The quantity demanded is the same as the quantity supplied at this 50 cent price.
  • This IS equilibrium.
  • This equilibrium price and equilibrium quantity will remain until something else changes.
  • This 50 cent price is the only one that matches the quantity demanded and the quantity supply

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INDIRECT BUSINESS TAXES

The official entry in the National Income and Product Accounts maintained by the Bureau of Economic Analysis for sales taxes. Indirect business taxes are one key difference between national income (the resource cost of production) and gross (and net) domestic product (the market value of production). Indirect business taxes (IBT) is generally less than 10 percent of gross domestic product (7 to 8 percent is common).

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ORANGE REBELOON
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Today, you are likely to spend a great deal of time looking for the new strip mall out on the highway seeking to buy either a coffee cup commemorating last Friday (you know why) or a wall poster commemorating the first day of spring. Be on the lookout for broken fingernail clippers.
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Potato chips were invented in 1853 by a irritated chef repeatedly seeking to appease the hard to please Cornelius Vanderbilt who demanded french fried potatoes that were thinner and crisper than normal.
"The more you praise and celebrate your life, the more there is in life to celebrate."

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IBT
Indirect Business Taxes
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