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Pfizer,a Pharmaceutical Company,has Proposed an Acquisition of Allergan,another Pharmaceutical Company

Question 2

Multiple Choice

Pfizer,a pharmaceutical company,has proposed an acquisition of Allergan,another pharmaceutical company.The combined firm is expected to be able to streamline operations by eliminating overlap,and thus reducing costs substantially.What type of synergies are the most likely reason behind this merger?


A) economies of scale
B) vertical integration
C) economies of scope
D) monopoly gains
E) efficiency gains

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