In Most Cases of Overcapacity Mergers, Both Companies Are Usually

question 22

True/False

In most cases of overcapacity mergers, both companies are usually already large enough to be operating at a minimum efficient scale.

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Definitions:

Target Costing

A method of price setting that combines market-based pricing with a cost-reduction emphasis; the target cost is the expected selling price less the desired profit.

Marketplace

A platform or environment where buyers and sellers engage in exchange of goods and services. It can be physical or digital.

Target Cost

A pricing strategy in which a company sets a cost for a product and works backwards to achieve that cost through design and manufacturing improvements.

Profit Margin

The ratio of operating income to sales.