Economy, asked by SiphoZ, 10 months ago

When might a merger result in a business experiencing diseconomies of scale?

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Answered by Dheerajsingh4141
1

Answer:

Increased concentration and reduced competition are obvious disadvantages of a merger between two dominant firms. Firms that merge may experience diseconomies of scale, such as difficulties with co-ordination and control. This will increase average cost in the long run, and reduce profitability.

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