A merger between two firms producing different products may experience
A)increasing returns.
B)economies of scale.
C)economies of scope.
D)increasing marginal product.
E)decreasing marginal cost.

Question

Quizplus · Accepted Answer

A merger between two firms producing different products may experience economies of scope, which occurs when the combined firm can produce both products more efficiently than when each firm was producing them separately. This is because the merger may allow for the sharing of resources, such as production facilities or distribution networks, resulting in lower costs and increased efficiency.

A Merger Between Two Firms Producing Different Products May Experience