Firms have synergy when they can control prices.

Question

Quizplus · Accepted Answer

Synergy refers to the idea that the whole is greater than the sum of its parts. It usually occurs when two or more firms combine their resources to achieve better results than they would have achieved individually. While controlling prices may lead to higher profits for a firm, it does not necessarily create synergy. In fact, controlling prices can lead to negative impacts on consumers and competition, which may harm the overall market ecosystem.

Firms Have Synergy When They Can Control Prices