Firm V Was Worth $500 and Firm a Had a Market

question 61

Multiple Choice

Firm V was worth $500 and Firm A had a market value of $400.Firm V acquired Firm A for $450 because they thought the combination of the new Firm VA was worth $1,000.What is the NPV from the merger of Firm V and Firm A?

• A)$0
• B)$50
• C)$400
• D)$450
• E)None of the above.

Identify factors that can shift or rotate the PPF.

Understand the principle of increasing opportunity costs and its representation on the PPF.

Recognize points of efficiency, inefficiency, and unemployment on the PPF.

Explain the role of technology and economic growth in shifting the PPF.