Relative Operating Costs Are Reduced for Merged Companies Because of an Increase

question 4

Multiple Choice

Relative operating costs are reduced for merged companies because of an increase in size that allows for the reduction or elimination of overlapping resources

• A) economies of scale
• B) economies of scope
• C) resource complementarities
• D) synergy

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Definitions:

Conditional

A compound proposition containing two component propositions (the antecedent and the consequent) and asserting that the truth of one component would be sufficient for the truth of the other.

Biconditional

A logical statement where both components imply each other; true only when both parts are either true or false.

Truth Values

The values indicating the relation of a proposition to truth, commonly classified as true or false.

Main Connective

In logic, the operator within a proposition that determines the proposition's overall truth value; it links the main components of the proposition.