Synergy is created by the efficiencies derived from economies of scale and economies of scope and by sharing resources across the businesses in the newly created firm's portfolio.

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Synergy refers to the increased efficiency and value created when businesses combine resources, benefiting from economies of scale (cost advantages due to increased output) and economies of scope (cost advantages due to a variety of products).

Synergy Is Created by the Efficiencies Derived from Economies of Scale