Firm a Has a Market Value of $318,000 While Firm

question 3

Multiple Choice

Firm A has a market value of $318,000 while Firm B's market value is $69,000.Firm A just acquired Firm B for $75,000 cash.What is the net present value of the acquisition if the merger creates $15,500 of synergy?

• A)$7,000
• B)$4,500
• C)−$6,000
• D)$9,500
• E)−$13,000

Understand the concept of marginal social benefit and marginal social cost in the context of public goods and common resources.

Identify the conditions under which the provision of public goods and common resources is socially optimal.

Analyze the role of government in providing public goods and managing common resources to maximize social welfare.

Recognize the challenges associated with private market provision of public goods and common resources.

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Definitions:

Collective Agreement

An employment contract between an employer and a union that sets out the terms of employment of a group of the employer’s employees represented by the union

Employment Standards Act

Legislation that outlines the minimum terms and conditions of employment, such as wage, working hours, holidays, and leaves, in a specific jurisdiction.

Minimum Wage

The lowest legal wage that employers can pay their employees, ensuring a basic standard of living.

Compensation Costs

The total of an employer's expenses for employee salaries, wages, benefits, and other forms of compensation.