Economics 2281 · O Level · Firms' costs, revenue and objectives

Firms' costs, revenue and objectives — practice question

Why would one oil-drilling company making a profit want to acquire another oil-drilling company that is also making a profit?

  • Ato bring its suppliers into the same firm
  • Bto get closer to its customers to increase sales
  • Cto reduce its costs per unit of output
  • Dto reduce the amount of corporation tax it paid

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