Mergers and acquisitions are likely to _____ in a market.
A) increase the level of competition
B) reduce the price elasticity of demand
C) increase the costs of production
D) expand diseconomies of scale

Question

Quizplus · Accepted Answer

Mergers and acquisitions can lead to a reduction in the number of firms in a market, which can decrease competition and make demand less sensitive to price changes, thus reducing the price elasticity of demand.

Mergers and Acquisitions Are Likely to _____ in a Market