If the Unexpected Short-Run Fluctuations in Demand Begin to Look

question 35

Multiple Choice

If the unexpected short-run fluctuations in demand begin to look permanent:

• A)the firms would allow their prices to change accordingly.
• B)the firms would be hesitant to allow their prices to change accordingly.
• C)the firms would not allow their prices to change.
• D)the firms would change the quality of their products but not the prices.

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Definitions:

Merged Firm

A new entity formed through the combination or acquisition of two or more companies, which may result in various financial and operational synergies.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Market Price

The present rate at which a service or asset is available for purchase or sale.

True Synergies

The real and achievable benefits and efficiencies gained by combining companies, processes, or systems, often cited as a justification for mergers and acquisitions.