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 ▸Explain why a government budget deficit is likely to stimulate economic growth.
The elasticity of supply of frozen pizzas is likely to be more elastic than the supply of fresh vegetables. Do you agree with this statement?
What are supply side policies and how do they effect the economy?
Evaluate one reason why trade may be beneficial for an economy (5 marks)