Sensible Reasons for Mergers
Economies of Scale
A larger firm may be able to reduce its per unit cost by using
excess capacity or spreading fixed costs across more units.
$
$
$
Reduces costsReduces costs
Sensible Reasons for Mergers
Economies of Scale
A larger firm may be able to reduce its per unit cost by using
excess capacity or spreading fixed costs across more units.
$
Reduces costsReduces costs