Suppose That Irma's Production Function Is F(x₁, X₂)=(min{x₁, 3x₂})^1/2

question 1

Multiple Choice

suppose that Irma's production function is f(x₁, x₂) =(min{x₁, 3x₂}) ^1/2.If the price of factor 1 is w₁ = $2 and the price of factor 2 is w₂ = $6, then her supply function is given by the equation

• A)S(p)=p(max{w₁, 3w₂})².
• B)S(p)= 4p.
• C)S(p)=p(min{w₁, 3w₂})².
• D)S(p)= p/8.
• E)S(p)= min{2p, 18p}.

Explain the role of interest rates and market conditions in merger activity.

Understand defensive strategies against hostile takeovers.

Comprehend the accounting methods for mergers and their impact on financial statements.

Discuss the motivations behind mergers and acquisitions from a managerial perspective.

---

Definitions:

Correspondent Inference

A theory suggesting that people make inferences about a person's dispositional attributes based on observed behaviors, especially when those behaviors have socially unexpected consequences.

Stability of Causation

A principle suggesting that causal relationships remain consistent across different contexts and times.

Fixed Versus Incremental Attribution

Theories that explain how people perceive their ability to change (incremental) versus viewing their abilities as static (fixed).

Stable Internal

Characteristics or attributes within an individual that are consistent and reliable over time.