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Please answer A. Statement 1: Sometimes a firm with monopoly power will vertically integrate when it wants to sell its product to two different markets

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A. Statement 1: Sometimes a firm with monopoly power will vertically integrate when it wants to sell its product to two different markets at different prices.

Statement 2: Sometimes a firm will want to vertically integrate despite a competitive market to purchase the ingredient if quality is difficult to determine at the time of purchase.

Both statements are false.

Both statements are true

Statement 2 is true, and 1 is false

Statement 1 is true, but 2 is false

B. Statement 1: Sometimes firms will want to vertically integrate so that they can alter the tax jurisdiction where they earn profit.

Statement 2: When there is a lot of asset specificity and very little uncertainty about the future, vertical integration is typically preferred to a long term contract.

Group of answer choices

Both statements are false.

Statement 2 is true, and 1 is false

Both statements are true

Statement 1 is true, but 2 is false

C. Statement 1: Incentive pay is often cheaper than paying employees with a fixed salary.

Statement 2: Incentive pay often gives incentive for employees to do things that management won't like.

Both statements are false.

Both statements are true

Statement 1 is true, but 2 is false

Statement 2 is true, and 1 is false

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