In Which Merger Type Would It Be Least Likely to Observe

question 103

Multiple Choice

In which merger type would it be least likely to observe economies of scale?

• A)Horizontal
• B)Vertical
• C)Conglomerate
• D)It is equally likely to observe economies of scale in all merger types

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Definitions:

Efficient Level

The optimal point of production or operation where resources are utilized in the most effective manner, without waste, to achieve a desired outcome or maximized benefit.

External Costs

Costs caused by a business activity that are not borne by the business itself, but by other people or the environment.

External Benefits

Benefits from an economic activity experienced by parties not directly involved in the transaction, often leading to positive spillovers in society.

Subsidizing Production

The act of providing financial support to companies or industries to reduce the cost of producing goods or services, often to encourage production or lower prices for consumers.