Use a long-run average cost curve graph to illustrate how diseconomies of scale would not make it beneficial for two companies to go through with a merger
What will be an ideal response?
Assume the two companies are on ATC1. If they merge, they would move to ATC2 and be on the section of the long-run average cost curve that exhibits diseconomies of scale.
Economics
You might also like to view...
The study by economists Cox and Alm found that the 2006 after-tax income of the richest fifth of U.S. households is
a. equal to the after-tax income of the poorest fifth. b. 7 times the after-tax income of the poorest fifth. c. 14 times the after-tax income of the poorest fifth. d. 21 times the after-tax income of the poorest fifth.
Economics
Resources are efficiently allocated when production occurs at that output level where price:
A. Equals marginal cost B. Equals marginal revenue C. Is greatest over average cost D. Is equal to average total cost
Economics