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enot [183]
3 years ago
15

What is the difference between a horizontal merger and a vertical merger? A horizontal merger is a merger A. between firms of di

fferent sizes, while a vertical merger is a merger between firms of the same size. B. that would increase efficiency, while a vertical merger is a merger that would decrease efficiency. C. between firms in the same industry, while a vertical merger is a merger between firms at different stages of the production of a good. D. between firms that have market power, while a vertical merger is a merger between firms that are price takers. E. between firms in different industries, while a vertical merger is a merger between firms in the same industry. Which type of merger is more likely to increase the market power of a newly merged firm? __________ mergers are more likely to increase market power.
Business
1 answer:
Annette [7]3 years ago
5 0

Answer:

A) A horizontal merger is a merger between firms in the same industry while a vertical merger is a merger between firms at different stages of production of a good.

B) Horizontal mergers are more likely to increase the market power of the newly merged firm.

Explanation:

A) A horizontal merger is a type of merger which takes place between businesses that sell the same type of product. It can also be described as the coming together of two or more companies that manufacture similar products, this is done to reduce the amount of competition in the market, share different types of skills that can boost the amount of profit incurred, increase the rate of expansion.

A vertical merger is a merger that exists between two of more organisations that manufacture products which are not alike in any way. The main objective of this merger is to lower the cost of production.

B) Horizontal mergers have the tendency to increase the market power by causing a decline in the amount of companies that are competing for the same product in the market.

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With  F.O.B. delivered pricing   the seller pays both the cost of loading and transporting the product to the customer.

Means of transport is used interchangeably with means of transport. Transportation means include buses, trains, planes, ships, cars, etc. Transportation means roads, airways, oceans, and so on. It is one of many types of transport machinery used to transport people and cargo.

Modern means of transportation include airways, waterways, and railroads. Description: Modes of transport include air, water, and land. Examples of modern transportation include ships, boats, planes, and trains. Each mode of transportation has its own infrastructure, vehicles, carriers, and operations.

Means of transport is used interchangeably with means of transport. Transportation means include buses, trains, planes, ships, cars, etc. Transportation means roads, airways, oceans, and so on. It is one of many types of transport machinery used to transport people and cargo.

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2 years ago
In​ 2015, the Washington Nationals baseball team signed pitcher Max Scherzer to a contract to play for them for seven years. He
Salsk061 [2.6K]

Answer: D. The actual value of the contract is less than $30 million for each year he plays.

Explanation:

Given that Mark sherzer will be paid $15 million per year for 14 years reflects a contract whose value at the time of signing is ($15 million × 14) = $210 million. However, the payment would not be paid at the of signing but spread over a period of 14 years with $15 million being splashed out annually. However, considering the time value of money, whereby the present value of a fixed amount decreases with time. Hence in actual sense, the $210 million face worth of the contract will actually be less than $30 million [$210/7(playing years)] as time progresses on the fixed amount paid yearly due to reduction in the value of the present value as time progresses.

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3 years ago
the contribution margin income statement allows users to easily judge the impact of a change in ______ on profit.
Ne4ueva [31]

The blank space has been correctly filled below:

  • The contribution margin income statement allows users to easily judge the impact of a change in <u>selling price, cost, or volume</u> on profit.

The contribution margin income statement is an evaluation of a former sales period. Entrepreneurs use this procedure to determine whether they made a profit or loss during the period.

After their evaluation, they realize the operating income or net income. The contribution margin is generated using this formula,

Net product revenue - Total variable cost ÷ product revenue.

A proper understanding of the fixed and variable costs is essential to accurately calculate the contribution margin.

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2 years ago
He people who promote innovations as part of the process of transmission are called? adopters. transmitters. innovators. entrepr
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The people who promote innovations as part of the process of transmission are called "Transmitters".

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In business, innovation often results when ideas are applied by the company in order to further satisfy the needs and expectations of the customers.

Adding to it, the transmitters are those who are helpful in the process of transmission of something. Rest all options like A, C and D are incorrect.

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6 0
2 years ago
Outdoor luggage inc. makes high-end hard-sided luggage for sports equipment. data concerning three of the company's most popular
Elden [556K]

1-a. The total time available on the plastic injection molding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?

Answer:

We need to need to find the contribution margin for each product.

Contribution Margin per unit = Selling Price per unit - Variable cost per unit

Then we need to find contribution margin per unit of constrained resources with the following formula:

Contribution Margin per unit of constrained resource = \frac{Contribution margin per unit}{Resource needed per unit of product}

Constraint: Time available on plastic injection moulding machine

Ski Guard Golf guard Fishing guard

Selling Price per unit 200 300 255

Less: Variable Cost 60 140 55

Contribution Margin 140 160 200

Processing time per unit (minutes) 2 5 4

Contribution Margin unit of constraint 70 (140/2) 32 (160/5) 50

1-b. Which product would be the most profitable use of this constraint?

Manufacturing the <u>Ski Guard</u> would be the <u>most profitable use</u> of this constraint since it has <u>the maximum contribution margin per unit of constraint, ($70 per unit).</u>

1-c. Which product would be the least profitable use of this constraint?

The <u>Golf Guard</u> would be the least profitable use of this constraint since it has the <u>least contribution margin per unit of constraint, at $32 per unit</u>.

2a. A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection molding machine is no longer the bottleneck. Instead, the constraint is the total available pounds of plastic pellets. What is contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?

We need to need to find the contribution margin for each product.

Contribution Margin per unit = Selling Price per unit - Variable cost per unit

Then we need to find contribution margin per unit of constrained resources with the following formula:

Contribution Margin per unit of constrained resource = \frac{Contribution margin per unit}{Resource needed per unit of product}

Constraint: Pounds of plastic pellets

Ski Guard Golf guard Fishing guard

Selling Price per unit 200 300 255

Less: Variable Cost 60 140 55

Contribution Margin 140 160 200

Plastic pellets per unit (pounds) 7 4 8

Contribution Margin per pound 20 (140/7) 40 (160/4) 25 (200/8)

2-b. Which product would be the most profitable use of this constraint?

The <u>Golf Guard</u> would be the <u>most profitable use</u> of this constraint since it has <u>the maximum contribution margin per unit of constraint, ($40 per unit).</u>

2-c. Which product would be the least profitable use of this constraint?

The <u>SkiGuard</u>, with a contribution margin of <u>$20 per pound</u> of plastic would be the <u>least profitable</u> use of this constraint.

3. Which product has the largest unit contribution margin?

Answer : The <u>fishing guard</u> has the <u>largest per unit contribution margin </u>at <u>$200.</u>

6 0
3 years ago
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