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Building Supplies is considering a merger with Tools and More. Building's total operating costs of producing services are $4 million for a sales volume of $20 million. Tools' total operating costs of producing services are $1 million for a sales volume of $5 million. Suppose that synergies in the production process result in a cost of production for the merged firms totalling $4.8 million with total sales remaining unchanged. Calculate the total average cost for the merged firm.
Elite Theory
A theory in political science and sociology which posits that a small minority, consisting of members of the economic elite and policy-planning networks, holds the most power—and that this power is independent of a state's democratic elections process.
Self-Interests
The focus on one's own advantages or well-being without necessarily considering those of others.
Direct Democracy
A form of government in which citizens make decisions directly rather than through representatives, often via referendums or initiatives.
Electoral College
A body of electors established by the United States Constitution, tasked with electing the president and vice president based on the popular vote in each state.
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