Which of the following would not be considered a synergistic benefit from a merger?
A) an improvement in distribution systems
B) economies of scale in production
C) decreased cost of capital
D) None of the above
D
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Consider the total cost of traveling from point A to point B
The cost of traveling by car would include the cost of gasoline and the opportunity cost of time; the cost of hopping on a bus would include the bus ticket and the opportunity cost of time. Assume that the bus ticket costs less than the gasoline. Does this imply that using a bus to get to the destination involves lower total costs than getting there by car? What if the bus doesn't take the fastest route from point A to point B?
The profit-maximizing condition for a firm selling its output in a competitive market and buying its resources in a competitive market is
A) P = MC only. B) MRP = wage only. C) Both A and B. D) Neither A nor B.