Suppose That General Motors Has Made an Offer to Acquire

question 70

Multiple Choice

Suppose that General Motors has made an offer to acquire General Mills.Ignoring potential antitrust problems, this merger would be classified as a:

• A)monopolistic merger.
• B)horizontal merger.
• C)vertical merger.
• D)conglomerate merger.
• E)None of the above.

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Definitions:

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors.

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than others.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for food, fiber, and other products.

Production

The process of creating goods and services through the combination of labor, materials, and technology.