Vertical integration occurs when a firm controls different stages of production. For example, in the brewing industry, you have Production – Brewing of beer. Distribution – beer transported to local markets. Retail – Beer sold in pubs and shops. To remember vertical integration – think of going up the supply chain. Horizontal integration, by contrast, …
Advertising is an invasive aspect of modern society. It is hard to look around without coming across advertising. In a way, advertising leads to deadweight welfare loss. The money spent on advertising goods does not increase their quality, nor does it increase the number of goods and services in the economy. However, it does cost …
About network license
About network license
TIPP (Transatlantic Trade and Investment Partnership) is a potential trade deal between the EU and US. It is currently being negotiated by the European Commission and the US. The aim of the agreement is Encouraging trade and investment between the EU and the US. Extend principles of European Single Market to include the US, enabling …
Vertical integration occurs when two firms at different stages of production merge. It involves going up or going down the supply chain. Example of vertical integration. Brewery merging with chain of pubs Software supplier merging with Computer firm Coffer grower merging with a coffee retailer such as Nescafe Car firm Renault merging with a tyre …
A missing market is a type of market failure. A missing market means that there is some obstruction to an efficient free market which would enable a Pareto efficient distribution of resources but for various reasons this market doesn’t exist.