Synergy Is Said to Occur When the Merged Company Is

question 82

Multiple Choice

Synergy is said to occur when the merged company is

• A) able to eliminate divisions that were doing the same tasks.
• B) able to combine the marketing efforts of all merged companies.
• C) able to get the employees from all merged companies to work towards one company goal.
• D) all of the answers are correct.

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Definitions:

Oligopoly

A market structure characterized by a small number of firms controlling a large market share, leading to limited competition and potentially higher prices for consumers.

Monopolistic Competition

A competitive landscape where numerous companies offer products that are alike but not the same, providing an opportunity for limited market control and the distinction of products.

Concentration Ratio

A statistical measure that indicates the extent of competition in a market, calculated as the market share of the largest firms.

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs, representing the profit beyond the normal return on investment.