A merger benefits society when it results in
A)increased market power.
B)a larger number of sellers in the market.
C)cost savings.
D)decreased market demand.

Question

Quizplus · Accepted Answer

A merger benefits society when it leads to cost savings, which in turn can lead to lower prices for consumers and increased efficiency for the merged company. Increased market power (A) can lead to higher prices and reduced competition, not benefiting society as a whole. A larger number of sellers (B) can increase competition, but this does not necessarily result in a benefit to society. Decreased market demand (D) is not a benefit to society.

A Merger Benefits Society When It Results in