When an Entrepreneur Like Bill Gates Makes $10 Billion Through

question 49

Multiple Choice

When an entrepreneur like Bill Gates makes $10 billion through creating and selling new products,

• A) there will be exactly $10 billion less for other individuals in the economy.
• B) the total size of the economic pie has been increased.
• C) there will be more than $10 billion in losses to other workers who lose their jobs.
• D) it is likely that the new products are not as good as other products that are available in the market.

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Definitions:

Conglomerate Mergers

Mergers between companies that operate in entirely different industries.

Anticompetitive Effects

Consequences or actions that reduce competition in a market, often associated with monopolistic practices and regulatory scrutiny.

Financial Mergers

Financial mergers involve the combination of two or more companies in the financial sector to create a new entity, aiming to enhance financial strength and market presence.

Private Equity

Investment capital that is not listed on a public exchange, invested in companies that are typically private with the aim of achieving high returns.