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Parts a, b, c and d of this question are independent of one another. a) firm A wants to acquire firm B to achieve economies

Parts a, b, c and d of this question are independent of one another.

a) firm A wants to acquire firm B to achieve economies of scale. Does this motive make economic sense? Answer in terms of YES or NO.

b) Firm C wants to acquire Firm D to reduce risk by diversification. Does this motive make economic sense? Answer in terms of YES or NO.

c) Firm X wants to acquire Firm Y to increase earnings per share. Does this motive make economic sense? Answer in terms of YES or NO.

d) consider the following hypothetical mergers. Are they horizontal, vertical or conglomerate?

i) Apple acquires Tesla

ii) Target acquires Walmart

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