Consider the Following Two Statements: (I) in the Presence of a U-Shaped

question 4

Multiple Choice

Consider the following two statements: (i) In the presence of a u-shaped average cost curve, you are willing to pay a premium for a target if
It brings you closer to the optimal size.
(ii) In the presence of a u-shaped average cost curve, firms operating at minimum average cost are
Most likely to be acquirers.

• A)(i) is correct, (ii) is incorrect.
• B)(ii) is correct, (i) is incorrect.
• C)Both (i) and (ii) are correct.
• D)Both (i) and (ii) are incorrect.
• E)(i) and (ii) only hold in a hostile takeover.

---

Definitions:

Synapses

Tiny spaces between neurons; the gaps between neurons are referred to as synaptic gaps.

Neurons

Basic working units of the nervous system, cells specialized in carrying messages through an electrochemical process.

Endorphins

Natural, pain-relieving chemicals in the brain that are associated with feelings of euphoria and well-being.

Shock

A medical emergency involving a sudden and severe drop in blood pressure, leading to insufficient blood flow to the organs.