Horizontal merger occurs when
A) two firms merge where one had sold its output to the other as an input.
B) the merger moves the combined firm onto the horizontal portion of its long-run average cost curve.
C) two firms merge where each is about the same size.
D) two firms producing a similar product merge.
Answer: D
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Assume that an increase in Costa Rica's government budget deficit reduced desired national saving by 10 million colon. Assuming Costa Rica is a small open economy, you would expect the government's action to
A) increase the current account balance by exactly 10 million colon. B) increase the current account balance by less than 10 million colon. C) reduce the current account balance by exactly 10 million colon. D) reduce the current account balance by more than 10 million colon.
Given whatever income they have, consumers make consumption choices to maximize the
a. total utility of the goods they consume b. marginal utility of the goods they consume c. average utility of each good they consume d. number of goods they buy e. prices of goods they buy
Supply-side economics stresses that high marginal tax rates
a. are the key to maintaining a balanced budget. b. are an effective short-run countercyclical tool to promote recovery from a recession. c. discourage people from working harder and using their resources productively. d. encourage people to work, supply resources, and use them more efficiently.
A scenario plan is different from business plan because:
a. A scenario plan focuses on business cash flows, and a business plan focuses mainly on strategy. b. Business plans are for long periods of time, and scenario plans are for short periods, like capital budgeting projects. c. A scenario plan is long term and focuses on industry, demographic, industry, and social trends. Business plans are short-term and focus mainly on cash flows and relatively short-term strategies. d. Business plans are usually for one-year and two year periods. Scenario plans are medium term, with time horizons of three to five years. e. Scenario plans tend to focus on long-term marketing strategies and the proper handling of non-operating assets (e.g., marketable security holdings). Business plans focus more on mergers and acquisitions and the proper lines of business in which a company should be involved.