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Answer Posted / deepak das
i) technical economies if the firm has significant fixed
costs then the new larger firm would have lower average costs
ii) bulk buying – discount for buying large quantities of
raw materials
iii) financial – better rate of interest for large company
iv) Organisational – one head office rather than two is more
efficient
v)Greater Efficiency. Redundancies can be merited if they
can be employed more efficiently
| Is This Answer Correct ? | 4 Yes | 2 No |
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