Economics 9708 · AS & A Level · 7.7

7.7 — practice question

A firm holding more than 50% of the market joins with its chief rival to create a single large company. From the firm's perspective, what is the most likely reason that the merger will be unsuccessful?

  • Aa fall in consumer surplus
  • Bcost of funding the merger
  • Ceconomies of scale
  • Dmarket dominance

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