Mergers and Acquisitions Are Created for All of the Following

question 123

Multiple Choice

Mergers and acquisitions are created for all of the following reasons except to

• A) gain new technology.
• B) reduce tax obligations.
• C) gain economies of scale.
• D) smooth out seasonal trends in sales.
• E) increase its number of employees

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Definitions:

Excess Capacity

A situation where a firm is producing at a lower scale of output than it has been designed for.

Monopolistic Competitor

A firm operating in a market structure where many companies sell products that are similar but not identical, leading to competition based on product differentiation.

ATC Curve

Represents the average total cost of production at different levels of output, showing how cost per unit changes with scale.

Excess Capacity

The ability of a company to produce more goods or services than currently needed, exceeding the current demand.