21-40 Success in a merger from revenue enhancement is more likely if the markets into which expansion occurs are less than fully competitive.

Question

Quizplus · Accepted Answer

If the markets into which expansion occurs are less than fully competitive, the merged company may have more power to set prices and increase revenue. In fully competitive markets, it can be harder for a merged company to gain market share and increase revenue. Therefore, success in revenue enhancement through a merger is more likely if the markets are less competitive.

21-40 Success in a Merger from Revenue Enhancement Is More