A leading software company merged with its competitor to form a new company. Which of the following is likely to be the result of this merger?
A) Decreased cost per unit output
B) Decreased bargaining power over suppliers and customers
C) Increased industry rivalry
D) Decreased profitability
E) Decreased product differentiation

Question

Quizplus · Accepted Answer

By merging with a competitor, the combined company can enjoy economies of scale, reduce duplicated costs, and share resources efficiently, leading to decreased cost per unit output.

A Leading Software Company Merged with Its Competitor to Form