A Public Offer by One Firm to Directly Buy the Shares

question 45

Multiple Choice

A public offer by one firm to directly buy the shares of another firm is called a:

• A)merger.
• B)consolidation.
• C)tender offer.
• D)spinoff.
• E)divestiture.

---

Definitions:

Marginal Returns

The additional output that is produced by utilizing one more unit of a particular input, while holding all other inputs constant.

Short-Run Average Total Cost (ATC₂)

The total cost divided by the quantity produced in the short-run, where some inputs are fixed.

Diminishing Marginal Returns

A principle stating that if one factor of production is increased while others are kept constant, the resulting increase in output will eventually decline.

Short-Run Average Total Cost (ATC)

The total cost per unit of output in the short run, where some factors of production are fixed.