An acquisition will not be profitable
a. In any circumstances
b. As long as you paid lower than the company's discounted future profits
c. Without a synergy that makes the company more valuable to you than to the current owner
d. None of the above
c
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Lydia runs a small nail salon in the town of New Hope. She is debating whether she should extend her hours of operation. Lydia figures that her sales revenue will depend on the number of hours the nail salon is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $10 per hour.
What is Lydia's marginal benefit if she decides to stay open for two hours instead of one hour?
a. $125
b. $75
c. $25
d. $50
Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________
A) rises; increases B) does not change; does not change C) falls; increases D) rises; decreases E) falls; decreases
Which of the following is true about the demand curve facing the dominant firm?
A) It equals market demand minus fringe firms' supply curve. B) It is identical to market demand. C) It equals market demand minus demand facing the fringe firms. D) It is horizontal.
Engel's Law claims that
a. the percentage increase in quantity demanded for food is less than the percentage increase in income b. food is an inferior good (as economists define inferior good, of course) c. the demand for food is income elastic d. the income elasticity for food is negative e. consumers' demand for food does not increase when the price of food falls