Answer:
D economies of scale.
Explanation:
Economies of scale are cost advantages obtained with cost per unit of output reducing with an increasing scale.
Economies of scale occur when average costs begin to fall as output increases.
If the firm finds out it could reduce its long-run average total cost by increasing output, then it is experiencing economies of scale.
Answer:
See below
Explanation:
Contribution margin = Sales value - Variable expenses
Given that;
Sales for Jones = $40,000
Less variable expenses
Cost of goods sold ($4,800)
Contribution margin = $40,000 - $18,800 = $21,200
Answer:
the expected rate of return of the junk bond = 17%
Explanation:
the expected rate of return of the junk bond = (return if the company makes a profit x probability of the company making a profit) + (return if the company makes goes bankrupt x probability of the company going bankrupt) + (return if the company breaks even x probability of the company breaking even)
the expected rate of return of the junk bond = (40% x 0.3) + (0 x 0.2) + (10% x 0.5) = 12% + 0 + 5% = 17%
Answer:
b. banned anticompetitive mergers that occurred as a result of one company acquiring the physical assets of another company.
Explanation:
- The Sailor-Kefauver Act was a United States federal law passed in 1950 that amended and strengthened the Clayton Antitrust Act of 1914, which amended the Sherman Antitrust Act of 1890.
- The Sailor-Kefauver Act was passed to eliminate a loophole to link firms to the acquisition and acquisition of assets that are not direct competitors.
- The Clayton Act prohibited stock purchase mergers, the competition was reduced, and smarter traders were able to find ways to buy competitive property around the Clayton Act. Under the Sailor-Kefauver Act, asset acquisition competition decreases, and that practice is banned.
Answer: The newly created firms is able to take advantage of economies of scale.
Explanation:
A merger is an agreement whereby two companies come together and pool their resources together in order to form one company and achieve same organizational goals.
One main reason why companies merge together is in order to achieve economies of scale. This is the reduction in cost as a result of the expansion and increase in production level.