Which of the Following Is an Example of Synergy in Business

question 33

Multiple Choice

Which of the following is an example of synergy in business?

• A)Amazon's use of the Internet to sell books
• B)Bank of America acquiring Countrywide Financial to reach a large pool of new customers
• C)Blockbuster combining traditional video rental with online video rental
• D)Walmart's order entry and inventory management system to coordinate with suppliers
• E)Nike's use of technology to improve its product offerings

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Definitions:

Perfectly Competitive

A market structure where there are many buyers and sellers, goods are homogeneous, and there is free entry and exit in the market.

Marginal Cost

The boost in overall cost that comes from generating one extra unit of a product or service.

Quantity Effect

The change in quantity demanded or supplied of a product as a result of changes in its price.

Marginal Cost

The expense increase for generating an additional unit of a product or service.