A Merger That Allows a Firm to Access a Cheaper

question 43

Multiple Choice

A merger that allows a firm to access a cheaper way of financing its projects is an example of:

• A)Financial economies of scope
• B)Financial economies of scale
• C)Financing synergy
• D)Tax benefits

---

Definitions:

Upward-Sloping Supply Curve

A graph showing that as the price of a good increases, the amount suppliers are willing to produce also increases.

Producer Surplus

The dissimilarity between the baseline price producers accept for a good or service and the actual price paid to them.

Upward-Sloping Supply Curve

Illustrates the principle that as the price of a good or service increases, producers are willing and able to supply more of it, reflecting a direct relationship between price and quantity supplied.

Upward-Sloping Supply Curve

A graphical representation showing that as the price of a good increases, producers are willing and able to supply more of it.