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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Answer:
If I was banking with my local town bank and it happens that Bank of Africa purchases it, there are cost and benefits associated with the merge. First, Bank of America is global, meaning that I will be able to access the Services such as ATM services at different points. Second, due to its area of coverage, the services are cheaper compared to the ones I got when it was in my local town. However, due to the monopoly of the bank, they might increase the charges making them more expensive than when the services in the local village. Additionally, it will be a challenge for average customers, such as farmers, to access big banks unless faithful people accompany them.
Explanation:
Answer:
Less than average total Cost
Explanation:
Average total cost can be estimated as
(total fixed cost as well as variable costs )/ ( total units produced). It has a great impact on how a business is going to set up the price of their products. Marginal cost is can be regarded as alteration in total cost as a result of increase in unit of quantity produced. It should be noted that If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be Less than the average total cost
Answer: Jordan's recognized gain in the year of sale is $2500.
Explanation:
Given that,
Jordan inherited 10 shares of universal corp. stock upon her grandfather's death and have a fair market value of $5000
Jordan's grandfather purchase these shares in 1995 for $2500
After four months of her grandfather's death, Jordan sold all of the shares for $7500
So,
Jordan's recognized gain in the year of sale = the value of sale - the fair market value at the time of her grandfather's death
= $7500 - $5000
= $2500
Answer: $197,600
Explanation: Don Co is making a sale to Cologne GmbH and on the date of the transaction there is an exchange rate called the spot rate. Don Co will record in its books the value of the transaction on the set date at the spot rate which is:
200,000 euros @ .988
= $197,600
on the date of the settlement of the debt by Cologne GmbH, the spot rate is also considered which will be 200,[email protected] .995 = $199,000
Note that on the payment date, the exchange rate has gone up and now Don Co has a higher receivable value that what is in its book.
the difference of $1,400 ($199,000-$197,600) will now be noted in the books of Don Co as an exchange gain on the transaction.
