A Dynamic Disequilibrium Occurs When

question 12

Multiple Choice

A dynamic disequilibrium occurs when

• A) The market has not had time to adjust to a change
• B) The market has not adjusted because of a government policy
• C) The market has not adjusted because of market power possessed by sellers

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Definitions:

Acquiring Firms

Companies that purchase a majority stake in other companies to take over their operations.

Synergistic Benefits

Gains realized from the combination or cooperation of different groups, systems, or companies, where the result is greater than the sum of their separate effects.

Merger

The combination of two or more companies into one, to achieve greater efficiencies and strengthen financial and operational positions.

Operating Economies

Cost advantages that enterprises obtain due to the scaling of production or the efficient allocation of resources.