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What Is a Possible Advantage of a Horizontal Merger for the Economy

Question 20

Multiple Choice

What is a possible advantage of a horizontal merger for the economy?


A) The merging firms could avoid losses.
B) The merged firm might reap economies of scale which could translate into lower prices.
C) The degree of competition in the industry will be intensified.
D) The government stands to collect more corporate income tax revenue.

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