A shift from S1 to S2 reflects the change that happens when a negative externality is taken into account. A shift from D1 to D2 reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures. An external cost exists. This will lead to a(n)
Definitions:
Legal Existence
A term indicating that an entity is recognized under the law as having legal rights and obligations.
Hostile Tender Offer
An attempt to acquire a company against the wishes of its management and board by directly offering to buy the shares from the shareholders.
Cash
Cash is a medium of exchange in the form of physical currency, such as coins and banknotes.
Target Shareholders
Individuals or entities that own shares in a company that is the subject of a merger or acquisition proposal.
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