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1 year ago

Firms often consolidate industries through horizontal mergers and acquisitions to?

Business

1 answer:

Brrunno [24]1 year ago

3 0

Firms often consolidate industries through horizontal mergers and acquisitions to increase their market power.

<h3>What is market?</h3>

A market is a collection of systems, institutions, processes, social relationships, or infrastructures in economics that allow parties to exchange goods and services.
While parties may trade goods and services for money, the majority of markets rely on sellers providing their wares or services—including labor—to customers in exchange for payment.
A market, in this sense, is the mechanism by which the costs of goods and services are decided.
Markets enable distribution and allocation of resources in a community and facilitate trade.

<h3>What purpose do markets serve?</h3>

Markets are crucial.
They serve as the exchange mechanism for corporate stock and provide access to funds for firms.
Markets have a key role in how prices are set, how liquidity is transformed, and how businesses may meet customer wants.

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You might be interested in

When total production is greater than total expenditures, __________ is produced than households want to buy, which leads to ___

Tom [10]

If the total production exceeds the total expenditures this means that there are more goods are produced than the demand of each households. Thus, this will lead to an increase of inventory. Then this will signal the manufacturing firm that they have overproduced the goods which will lead to cut back the production. This leads to lesser prices and/or unsold goods alongside with the likelihood of unemployment. Therefore the answer is d.

6 0

3 years ago

For the quarter ended March 31, 2017, Croix Company accumulates the following sales data for its newest guitar, The Edge: $316,7

erastovalidia [21]

Answer:

Explanation:

The preparation of ta static budget report for the second quarter is shown below:

CROIX COMPANY

Sales Budget Report

For the Quarter Ended June 30, 2017

Second Quarter Year to date

Product Line Budget Actual Difference Budget Actual Difference

New Guitar $383,500 $387,400 $3,900 $700,200 $690,500 $9,700

Favorable Unfavorable

The year to date balances are computed below:

For Budget:

= $383,500 + $316,700

= $700,200

For Actual:

= $387,400 + $690,500

= 690,500

6 0

3 years ago

Inflation is 20 percent. Debt is $2 trillion. The nominal deficit is $300 billion. What is the real deficit or surplus

algol13

Answer:

Real deficit is -$100 billion.

Explanation:

Since we have a nominal deficit in the question, what we are to calculate is the real deficit.

The real deficit can be described as the actual or nominal deficit that has been adjusted for the effect of inflation on the debt. Therefore, the real deficit can be calculated using the following formula:

Real deficit = Nominal deficit - (Debt * Inflation rate) ................. (1)

From the question, we have:

Inflation rate = 20%

Debt = $2 trillion = $2,000,000,000,000

Nominal deficit = $300 billion = $300,000,000,000

Substituting the values into equation (1), we have:

Real deficit = $300,000,000,000 - ($2,000,000,000,000 * 20%)

Real deficit = $300,000,000,000 - $400,000,000,000 = -$100,000,000,000 = -$100 billion

Therefore, real deficit is -$100 billion.

4 0

3 years ago

Public goods represent a market failure because

JulsSmile [24]

Public goods are available everywhere and are <span>both non-excludable and non-rivalrous</span>
They represent a market failure because <span>by their very nature they are nonexcludable and nonrival which makes it difficult for the private sector to supply them profitably. Answer: B
</span>Public goods are nonrival in consumption and their benefits are nonexcludable

7 0

3 years ago

Everything else held constant, an increase in the excess reserves ratio causes the m1 money multiplier to ________ and the money

Cloud [144]

The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.

<h3>What is the reserve ratio?</h3>

The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.

<h3>How is reserve ratio determined?</h3>

The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
The calculation for a bank can be obtained by dividing the bank deposits by the cash reserve held with the central bank, and it is expressed as a percentage.

<h3>What is an example of the reserve ratio?</h3>

The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.

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4 0

2 years ago