Explain two reasons why firms merge.
By merging a firm will grow in size allowing to benefit from economies of scale as the average cost of producing is reduced. In the case that the merge is horizontal the firm will gain market share as well as reduce competition.
AT
Related Economics GCSE answers
All answers ▸Why might the Bank of England raise the bank rate if inflation rises above 2%?
Why are UK government gilt (bond) yields rising and why is that bad?
Define a monopoly and explain its positive and negative impacts on the economy.
Analyse how an increase in wages could cause inflation.