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:

Market

The arena in which buyers and sellers come together to trade goods, services, or financial instruments, establishing prices through supply and demand.

Usury Law

Legislation that sets the maximum interest rate that can be charged on loans, to prevent lenders from imposing excessively high rates.

Market Rate

The prevailing interest rate available in the market for loans or the rate at which other financial instruments are priced, often influenced by the supply and demand for money.

Shortage

A situation where the demand for a product or service exceeds the available supply.