ABC and XYZ,two Organizations in the Same Industry,have Come Together

question 3

Multiple Choice

ABC and XYZ,two organizations in the same industry,have come together to pursue areas of mutual interest.This refers to a(n) :

• A) unethical venture.
• B) acquisition.
• C) corporate takeover.
• D) strategic alliance.

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Definitions:

Free-rider Problem

A situation in which individuals benefit from resources, goods, or services without paying for them, leading to underprovision of those goods or services.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that anyone can consume them without diminishing their availability to others, such as public parks and clean air.

Competitive Markets

Markets characterized by a large number of sellers and buyers, which helps ensure fair prices and efficient distribution of goods and services.

Nonexcludable

A characteristic of a good or service that prevents the owner from effectively excluding others from using it, often leading to free-rider problems.