Two Firms Producing Identical Products May Merge Due to the Existence

question 91

Multiple Choice

Two firms producing identical products may merge due to the existence of:

• A)Economies of scope.
• B)Economies of scale.
• C)Cost complementarities.
• D)All of the statements associated with this question are correct.

---

Definitions:

Traditionalists

Individuals or groups who adhere to long-established practices, values, or trends, often resistant to change.

Individualists

Persons who prioritize personal independence and self-reliance, often valuing their own goals and motivations over those defined by groups or society.

Creativity

Innovation; the ability to use imagination and insight to produce new ideas, products, and processes; an important ability that can be enhanced by keeping an open mind, having a questioning attitude, and using a new-ideas system.

Direction

The point, objective, or targeted goal; the establishment of purpose as an essential leadership function.