The acquisition of one company by another contributes little to productivity and results in reduced competition, which is harmful to the consumer.

Question

Quizplus · Accepted Answer

Mergers and acquisitions can lead to increased productivity through economies of scale, improved efficiency, and innovation. While some acquisitions may reduce competition, others can enhance competitive markets by strengthening companies' ability to compete globally. The impact on consumers varies depending on the nature of the acquisition and the market conditions.

The Acquisition of One Company by Another Contributes Little to Productivity