When might a merger result in a business experiencing diseconomies of – InterviewSolution

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