Which of the Following Is NOT an Example of a Revenue

question 74

Multiple Choice

Which of the following is NOT an example of a revenue enhancement that is a result of a merger?

• A)The revenue stream of the acquired firm becomes more stable because the target firm has different risk characteristics.
• B)The merger may expand the target firm's operations into areas that are not fully competitive.
• C)The merger may create cost synergies.
• D)All of these are examples of a revenue enhancement that is a result of a merger.

---

Definitions:

Marginal Revenue

The additional income received from selling one more unit of a good or service; it's a critical concept in determining optimal output level.

Prices

The cost in terms of money expected, required, or given for acquiring something.

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.

Prices

The cash amount one needs to spend to obtain a good, service, or asset.