The Merged Firm's Ability to Generate Synergistic Cost Savings Through

question 101

Multiple Choice

The merged firm's ability to generate synergistic cost savings through the joint use of inputs in producing multiple products is referred to as:

• A) economies of scale.
• B) economies of scope.
• C) x-efficiencies.
• D) none of the options.

---

Definitions:

Opportunity Cost

The dismissal of prospective benefits from other opportunities by settling on one choice.

Microchip

A small semiconductor device containing integrated circuits used for various electronics and computing functions.

Tire(s)

Rubber-based components fitted around the rims of vehicle wheels to provide traction, support the vehicle load, and absorb shock from the road.

Autarky

A situation where a country or economy is self-sufficient and does not engage in international trade or relies on imports.