The Business Activities of Firm a Confer Positive Externalities on Firm

question 378

Multiple Choice

The business activities of Firm A confer positive externalities on Firm B, and the business activities of Firm B confer positive externalities on Firm A. If the two firms merged, then

• A)their respective markets would move closer to the social optimum.
• B)their respective markets would move further away from the social optimum.
• C)total surplus in their respective markets would decrease.
• D)the merger would serve as an example of a misguided public policy toward externalities.

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Definitions:

Team Performance

The collective efficiency and productivity of a group of individuals working together towards common objectives.

Relevant Examples

Instances or scenarios that are directly related and meaningful to the topic or context being discussed.

Styles of Team Players

Different attitudes and behaviors individuals display while working in a team, ranging from leadership to supportive roles.

Top Management

The highest level of executives and senior administrators responsible for steering the overall direction of a company or organization.