If Slick Shades, a sunglasses manufacturer, merges with Best Lens, a lens manufacturer, and the combined firm is able to reduce the number of accounting departments from two to one, the merger created ________.
A)synergies
B)a hold- up problem
C)managerial diseconomies
D)technological interdependencies

Question

Quizplus · Accepted Answer

The reduction in the number of accounting departments indicates that the combined firm is able to achieve cost savings or efficiencies that neither firm could achieve on its own, which is a synergy.

If Slick Shades, a Sunglasses Manufacturer, Merges with Best Lens