Acquisitions of competitors can be an effective way to gain economies of scale that can lead to lower costs and, subsequently, lower prices.

Question

Quizplus · Accepted Answer

Acquiring competitors can allow a company to consolidate operations, negotiate better prices from suppliers, and spread fixed costs over a larger volume of production or sales, resulting in economies of scale that can lead to lower costs and prices.

Acquisitions of Competitors Can Be an Effective Way to Gain