A Conglomerate Merger

question 227

Multiple Choice

A conglomerate merger

• A) can extend the line of products sold, extend the territories in which products are sold, or combine totally unrelated products.
• B) is defined as a merger involving two firms that previously had a buyer-seller relationship.
• C) is defined as a merger involving two firms producing the same or similar products and selling them in the same geographical market.
• D) is illegal, per se.

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Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a business.

Linear Equation

An algebraic equation in which each term is either a constant or the product of a constant and a single variable.

Variable Cost Per Unit

Variable Cost Per Unit is the cost that varies directly with the production volume, including materials and labor directly involved in the production.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or sales activity.