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Facebook Acquired Online Photo, Video, and Social Media Site Instagram

question 14

Multiple Choice

Facebook acquired online photo, video, and social media site Instagram for $1 billion in cash and stock. This is an example of _____.


Definitions:

Economic Profits

Profits exceeding the opportunity costs of all resources utilized by a firm, representing superior returns over the next best alternative.

Sole Seller

A market condition where only one supplier provides a particular good or service, also known as a monopoly.

Marginal Cost

The investment needed to produce an extra unit of a product or service.

Marginal Revenue

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

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