Mergers may provide reductions in average production cost as a result of:
A)Increased market share
B)A more efficient management
C)Economies of scale
D)Diversification

Question

Quizplus · Accepted Answer

Mergers can result in economies of scale, where the combined company can achieve lower average production costs due to increased operational efficiency and spread fixed costs over a larger output.

Mergers May Provide Reductions in Average Production Cost as a Result