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sergey [27]
3 years ago
5

Why would a merger reduce costs? Why would a merger increase markups? Why do many mergers fail nonetheless?

Business
1 answer:
Yuri [45]3 years ago
5 0
Costs are reduced because they are shared and also one firm may offer services that it has specialised in at reduced costs
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Assume that the full-employment level of output is $2,000 and the price level associated with full-employment output is 100. Als
mariarad [96]

Answer:

MPC = 0.4

Explanation:

Multiplier shows change in income due to change (increase) in investment, or change (decrease) in tax. It is calculated by Marginal Propensity to Consume, as follows -

Multiplier ie k = Δ Income / Δ (govt investment or tax) = 1 / (1 - MPC)

Given : ΔG  ie tax fall = 60 ; Targeted income rise = Full employment - actual output = 2000 - 1900 = 100

k = ΔY / ΔG = 100 / 60 = 1.67

k = 1 / (1 - MPC) → 1 - MPC = 1 / k → 1 - MPC = 1 / 1.67 → 1 - MPC = 0.6

MPC = 1 - 0.6 → MPC = 0.4

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2 years ago
Entrepreneurs and other producers accept risks because they hope to earn _____.
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Entrepreneurs and other producers accept risks because they hope to earn PROFIT.

Every businesses are set up for the purpose of earning profits. Every venture has its accompanying risks of failure but if everything goes right, then the pay-off will be worth it. 

High risks business also have high potential of generating high profit. 
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3 years ago
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Describe the two basic kinds of energy and explain how energy and power are related.
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Answer:

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Explanation:

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3 years ago
Food handlers must remove all objects on their hands and wrist except
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Except for gloves any other object can transfer bacteria.
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Good that cost one half dollar in the U.S. cost one euro in Germany, the real exchange rate would be computed as how many German
olchik [2.2K]

Answer:

Real Exchange Rate computed as German goods per U.S. goods: 2

Explanation:

Cost in the US: 0.50 dollar

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