When Hewlett Packard and Compaq Merged,the Combined Firm Was Larger

question 3

Multiple Choice

When Hewlett Packard and Compaq merged,the combined firm was larger and therefore could negotiate lower prices from suppliers.This benefit of horizontal integration is called

• A) economies of scale.
• B) reduction of excess capacity.
• C) cross-selling.
• D) product bundling.
• E) market power.

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Definitions:

Retirement Savings Contributions Credit

A tax credit also known as the "Saver's Credit," aimed at encouraging low- and moderate-income individuals to make retirement contributions.

Head of Household

A filing status for individual US taxpayers who are unmarried and pay more than half the cost of keeping up a home for themselves and a qualifying person.

American Opportunity Tax Credit

An allowance for authorized costs of education paid on behalf of a qualifying individual in the first four years of college or university.

Credit Phase-Out

A gradual reduction in the amount of a tax credit as a taxpayer's income surpasses certain threshold levels, until the credit is reduced to zero.