Greater Control Over the Acquisition of Raw Materials or the Distribution

question 156

Multiple Choice

Greater control over the acquisition of raw materials or the distribution of finished goods is an economic benefit of a ________.

• A) congeneric merger
• B) conglomerate merger
• C) horizontal merger
• D) vertical merger

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Definitions:

Loanable Funds

The funds available for borrowing, which are determined by the savings and investments in an economy.

Interest Rates

The percentage charged by a lender to a borrower for the use of assets, usually expressed as an annual percentage of the principal loan amount.

Hotelling Rule

An economic theory that addresses how the price of non-renewable resources should increase over time under conditions of efficient extraction and market equilibrium.

Marginal Extraction Cost

The additional cost associated with extracting one more unit of a resource.