Capital Co

question 19

Multiple Choice

Capital Co.is considering 5 different projects.Define Xi as a binary variable that equals 1 if project i is undertaken and 0 otherwise,for i = 1,2,3,4,5.Which of the following represents the constraint(s) stating that projects 2,3,and 4 cannot all three be undertaken simultaneously?

• A)X2 + X3 + X4 ≤ 3
• B)X1 + X2 + X3 + X4 + X5 ≤ 3
• C)X2 + X3 + X4 ≤ 1
• D)X2 + X3 + X4 ≤ 2
• E)X2 + X3 ≤ 1 and X3 + X4 ≤ 1

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Definitions:

Horizontal Merger

A merger between firms in the same industry operating at the same level of the production process, often aimed at reducing competition and achieving economies of scale.

Conglomerate Merger

A type of merger where two or more companies operating in completely different industries join forces or come under the control of one company.

Vertical Merger

A merger between two companies that operate at different stages within the same industry supply chain, enhancing efficiency or reducing costs.

Horizontal Merger

The combination of two or more firms operating in the same industry or producing similar goods or services.