If two companies are seeking regulatory approval to merge their respective businesses, which of the following will most likely be the focus of the arguments that they will present in favor of the merger?
A) consumers can purchase better quality goods or services at a lower price
B) the newly created firm is able to take advantage of economies of scale
C) the newly created firm could eliminate duplicative investments
D) the new firm will produce more efficiently and all of the above

Question

Quizplus · Accepted Answer

The correct answer is D because it encompasses all the potential benefits of a merger, including better quality goods or services at lower prices (A), economies of scale (B), and the elimination of duplicative investments (C), all of which contribute to more efficient production.

If Two Companies Are Seeking Regulatory Approval to Merge Their