If the Average Cost Per Unit Decreases When a Horizontal

question 14

Multiple Choice

If the average cost per unit decreases when a horizontal merger occurs then the combined firm is benefiting from synergy arising from:

• A) A reduction in net working capital.
• B) A beachhead.
• C) Economies of scale.
• D) Market power.
• E) Revenue enhancement.

Recognize the legal consequences of non-compliance with regulatory statutes.

Understand the procedures and legal standards applied in criminal investigations and trials.

Understand the essence and importance of non-direct feedback in communication.

Recognize the components of active and ineffective listening strategies.

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Definitions:

Postbox Rule

A principle that a mailed acceptance is effective when and where it is dropped into a mailbox.

Counteroffer

A new offer, the proposal of which rejects and terminates the offer available until then.

Unconditional Acceptance

An agreement to the terms of an offer without imposing any additional conditions or limitations.

Postbox Rule

A principle in contract law stating that an offer is considered accepted at the moment the acceptance is sent, not when it is received by the offeror.