Answer:
e
Explanation:
A merger can be described as the absorption of one firm by another firm.
When a merger occurs, one of the firms would not exist as a separate entity while the other firm would continue to exist.
<em><u>Types of merger </u></em>
<em><u>1. Horizontal merger : </u></em>this is a type of merger that occurs between firms in the same industry. The firms are usually competitors.
<u><em>Reasons for an horizontal merger</em></u>
- It is done to increase the market power of a firm
- This type of merger is done to achieve economies of scale.
An example of an horizontal merger is the merger between Mobil and Exxon in 1999.
2.<u><em> Vertical merger : </em></u>this is when a firm purchases another firm in the same production line. e.g. a baker purchases a pastry distributing company
<u><em>Reasons for a vertical merger</em></u>
- Cost savings
- It provides the firm acquiring a greater control of the production process.
<u><em>Types of vertical merger</em></u>
<u><em>a. Backward integration :</em></u> it is when the acquiring firm purchases a firm ahead of it in the production process. e.g. a baker purchases a pastry distributing company
<u><em>b. Forward integration :</em></u> it is when the acquiring firm purchases a firm that is behind it in the production process. e.g. a baker purchases a firm that supplies grains
<u><em>3. Conglomerate merger : </em></u>This occurs when the products of the merging firms were not related in any manner before the merger.
<span>This is, in fact, false. There is not significant data that shows that bad physicians are the ones who get sued, there is, in fact, data that can support just the opposite claim. It is also important to note that Americans file well over 17,000 medical malpractice lawsuits each year</span>
Answer:d. total market service quality survey.
Explanation:
The analysis of the total market service quality survey helps to provide details information on the product performance, personal contributions to success, company competitor performance, and other market related results.
Employee survey will not give information on the product nor customers evaluation, customer focused interview will miss out other vital information like competitors market performance, solicitation of customers complain may be bias and mystery shopping may not be adequate to be used for evaluation.
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Answer: B. TC = 50 + 20Q
Explanation:
A Natural Monopoly is generally associated with a firm that has very high initial fixed costs. These costs are generally related to the use of high scale technology or machinery to operate effectively.
Some examples include, gas pipelines, electricity grids, and the like.
They act as both a deterrent for companies to join the market as well as to exit.
Option B shows the typical Total Cost function of a Natural Monopoly and reflects the high initial costs as well.