The In the News article "XM-Sirius Merger Made Simple: One Is Always Less Than Two" discusses the proposed merger of two satellite radio companies.In some industries,mergers can be economically justified if economies of scale

Question

Quizplus · Accepted Answer

Economies of scale can lead to lower average cost of production because as the scale of production increases, fixed costs can be spread over a larger number of units, leading to a decrease in the per unit cost. This can make the merged company more cost-efficient and competitive. B and C are not directly related to economies of scale.

The in the News Article "XM-Sirius Merger Made Simple: One