--%>
Assignment Help - homework help

Problem on merging firms

Elucidate how the efficiency might increase when two firms merge?

Answer: If the two firms merge, their joined efficiency is expected to enhance owing to:

(i) Rise in the scale of output and the resultant economies of scale.
(ii) Better division of labor and specialization; and
(iii) Utilization of better technology, saving the cost of production.

   Related Questions in Microeconomics

  • Q : Levels of the Poverty Line In 2005

    In 2005 year, the proportion of people along with family incomes below the official poverty line into the United States was around: (w) one in eight. (x) one in ten. (y) two in twenty five. (z) one in twenty.

    Q : Burden of tax reduce on suppliers of

    Most of the burden of an excise (i.e., per unit) tax would be borne through consumers of the taxed good, although some of the tax burden would reduce on suppliers of the good demonstrated in: (w) Panel A. (x) Panel B. (y) Panel C. (z)

    		•
  • Q : Subsidies on a good for buyers and

    Government subsidies on a good because of: (w) less of the good to be produced and purchased. (x) prolonged excess demands for the good. (y) buyers to pay lower prices, when sellers receive higher prices. (z) prolonged shortages of the good.

  • Q : Income-Satisfaction boundaries Demand

    The maximum amounts of a good that people are willing and capable to buy at different market prices during a specific period are depicted by: (1) Horizontal summations. (2) Income or satisfaction boundaries. (3) Demand curves. (4) Consumption possibilities frontiers.<

    		•
  • Q : Excess supply for commodity When do we

    When do we state that there is an excess supply for the commodity in market? Answer: If at a given price the quantity supplied of a product surpasses its quantity d

    		•
  • Q : Duopoly for two sellers What is that

    What is that market termed in which there are just two sellers (or firms)? Answer: Duopoly terms to a market condition in which there are only two sellers.

    		•
  • Q : Illustration of transaction costs You

    You are more probable to shop at a remote farmers’ market quite than buy apples at a local grocery store while: (w) possible, since produce is cheaper at the farmers’ market. (x) you would like to buy only vegetables and fruits. (y) the opportunity costs o

    		•
  • Q : Define Visible items in BOP Visible

    Visible items: All kinds of goods that are exported and imported are termed as visible items. These are visible as such are made up of some matter or material. The record of such items is obtainable with the ports. Illustrations: Tea, Jute items, Petr

    		•
  • Q : Decreasing marginal returns and

    What is the difference between decreasing marginal returns and negative marginal returns?

    		•
  • Q : Gross Domestic Product of Norway What

    What do you mean by Gross Domestic Product of Norway?

    		•