ECON2200 Exam 2 Notes 2

ECON2200 Exam 2 Notes 2 - In the Reunification period firms...

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ECON2200 Exam 2 Notes As noted in class on 9/17, the demand for malt liquors was income elastic in the Reunification era. This explains the absence of malt liquors on the 1860 column of Table 17.3, and the inclusion of malt liquors in the 1910 column. Many late-19th century managerial innovations were first developed by: RR companies The two components of mass production are standardized interchangeable parts and vertical integration. FALSE Mass production involves the use of standardized interchangeable parts and continuous flow operations. Frederick W. Taylor argued that worker efficiency could be improved by: analyzing in detail the movements required to perform a job During the Reunification era, shareholders of most corporations were personally liable for debts incurred by the firms in which they owned stock. FALSE Limited liability for shareholders was an accepted legal doctrine in most states by 1860.
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Unformatted text preview: In the Reunification period, firms with high fixed costs often found that their __AC___ fell as they expanded output. A profit- maximizing monopoly charges a price that is GREATER THAN ITS MC In the late-1800s, some firms created __TRUSTS_______ , which were agreements under which stockholders of various, competing companies turned over their shares to a group that exercised voting control over the companies. Between 1903 and 1904, the total value of combined firms in the US MORE THAN DOUBLED The term "gentlemen's agreement" refers to an agreement between firms about THE PRICE THE FIRMS WOULD CHARGE FOR THEIR PRODUCTS Successful cartels create economic profits for the colluding firms, which can encourage new firms to enter the market. TRUE The horizontal merger wave of 1879-1893 was concentrated in the _CONSUMER GOOD______ industry....
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