For the Merger of Two Large Competing Companies to Be

question 29

Multiple Choice

For the merger of two large competing companies to be approved,there must

• A)have been a pre-notification to Parliament.
• B)be barriers to prevent new competitors from entering the market.
• C)still be effective competition after the merger.
• D)be no evidence of foreign competition in the market.
• E)be good economic health in the target firm.

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Definitions:

Profit-Maximizing

The process or strategy undertaken by a company to increase its profits to the highest possible level.

Loss-Minimizing

A strategy employed by businesses to reduce financial losses under unfavorable market conditions, often by cutting costs or restructuring operations.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced, giving a per-unit cost of production.

Profit-Maximizing

A strategy or point at which a business achieves its highest possible profit, with an optimal level of output and pricing.