If Two Companies Are Seeking Regulatory Approval to Merge Their

question 66

Multiple Choice

If two companies are seeking regulatory approval to merge their respective businesses, which of the following will most likely be the focus of the arguments that they will present in favor of the merger?

• A) consumers can purchase better quality goods or services at a lower price
• B) the newly created firm is able to take advantage of economies of scale
• C) the newly created firm could eliminate duplicative investments
• D) the new firm will produce more efficiently and all of the above

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Definitions:

Oxygen Balance

A concept in chemistry that helps in assessing the degree to which an explosive can be oxidized; it measures the relative amounts of oxygen and combustible elements in a compound.

Explosive

A reactive substance that contains a great amount of potential energy and can produce an explosion when released suddenly, usually accompanied by the generation of light, heat, sound, and pressure.

Explosions

Explosions are rapid expansions of matter resulting in a quick release of energy, often accompanied by the production of heat, light, sound, and shock waves.

Oxygen Source

An entity or process that produces or supplies oxygen, necessary for the survival of most life forms on Earth.