In an Overcapacity Acquisition, the Objectives Include ________

question 51

Multiple Choice

In an overcapacity acquisition, the objectives include ________.

• A) short cut innovation by buying it from small companies
• B) synergy of similar but expanded product lines or geographic markets
• C) eliminating capacity, gaining market share, and increasing efficiency
• D) anticipation of new industry emerging and culling resources from firms in multiple industries whose boundaries are eroding

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Definitions:

Short Run

A period in economics during which some factors of production are fixed, limiting the ability of a business to adjust to market changes.

Perfect Competitor

A market participant in perfect competition, characterized by a homogeneous product and no single buyer or seller having market control.

Short Run

A period during which at least one input, such as plant size or capital, is fixed and cannot be changed, affecting a firm's production capabilities.

Break-even

The point at which total cost and total revenue are equal, resulting in no net loss or gain.