What are the main positive and negative impacts of mergers?
A)Lower costs and increased market power
B)Increased competition and higher costs
C)Lower prices and more companies
D)Decreased market power and higher prices

Question

Quizplus · Accepted Answer

Mergers can result in lower costs as the combined company may benefit from economies of scale and scope. Additionally, the merged entity may have increased market power, which can allow it to negotiate better deals with suppliers and potentially increase profit margins. However, mergers can also reduce competition in the market, potentially leading to higher costs for consumers in the long run.

What Are the Main Positive and Negative Impacts of Mergers