Which of the Following Is One of the Negative Consequences

question 35

Multiple Choice

Which of the following is one of the negative consequences of megamergers?

• A) They increase the centralization of capital, reducing competition and raising prices for consumers.
• B) They increase the power of unions for the workers who are employed by these companies.
• C) They eliminate the corporate debt that finances the government and its programs.
• D) They create overproduction in terms of new plants, products, and jobs.

Analyze and complete job-costing spreadsheets.

Prepare and understand the Schedule of Cost of Goods Sold.

Prepare income statements for manufacturing companies.

Prepare balance sheets for specific periods.

---

Definitions:

Profit Per Unit

The amount of financial gain earned on each unit of a product sold, calculated by subtracting the cost per unit from the selling price per unit.

Most Efficient Output

The level of production where average total costs are minimized.

Explicit Costs

These are direct monetary payments a firm makes to purchase inputs for its production, such as wages, rent, and materials.

Implicit Costs

The opportunity costs of using resources already owned by the firm for production, as opposed to external spending.