A Combination of Two or More Companies in Which Neither

question 62

Multiple Choice

A combination of two or more companies in which neither competes directly with the other and no buyer-seller relationship exists is known as a ____.

• A) conglomerate merger
• B) vertical merger
• C) horizontal merger
• D) takeover

---

Definitions:

Profit-maximizing Output

The point of production where a company reaches its maximum profit, occurring when marginal cost matches marginal revenue.

Marginal Cost

The cost of producing one additional unit of a product, highlighting the concept of incremental cost in production.

Fixed Cost

Costs that do not change with the level of output produced by a firm.

Lawn-mowing

The action of cutting the grass in a yard or garden using a lawn mower, often considered a routine maintenance task or a service industry.