Which of the Following Is an Example of a Merger

question 43

Multiple Choice

Which of the following is an example of a merger undertaken in order to achieve economies of scale?

• A)A car manufacturer acquires a car parts supplier.
• B)A breakfast cereal producer acquires another breakfast cereal producer and the combined firm is able to negotiate a reduced cost for the grain used in its cereal.
• C)A telecommunications firm acquires another telecommunications firm and the combined firm serves a large percentage of the market.
• D)An accounting firm acquires another accounting firm and the combined firm is able to eliminate duplication among administrative positions.
• E)A video game development firm acquires another video game development firm that specializes in designing games for a new gaming system.

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Definitions:

Nash Equilibrium

A concept in game theory where each player's chosen strategy is optimal, given the strategies of all other players, resulting in no incentive to deviate unilaterally.

Sequential Play

A strategic situation in which players make decisions one after another, allowing later players to observe the actions of earlier ones.

Game Theory

The study of mathematical models of strategic interaction among rational decision-makers.

Foreign Moves

Actions or decisions taken in a different country from one's own, often relating to business, relocation, or strategic planning.