Mergers can sometimes be socially beneficial if they do which of the following?
A
Reduce competition in the market
B
Enhance the quality of the products
C
Increase costs
D
Increase market pricing power of oligopolies
Answer
Option B
Enhance the quality of the products
A merger means making one company from two companies in lemon words.
It generally, decreases competition, decreases costs and increases pricing, and the firm can charge higher prices, but it is socially beneficial if the firm increases the quality of the product and increases social surplus over the higher prices.
Mergers can sometimes be socially beneficial if they do which of the following? A Reduce competition...