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Home/ Questions/Q 189663
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Nupurtewatia
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Nupurtewatia
Asked: April 6, 20222022-04-06T04:31:40+00:00 2022-04-06T04:31:40+00:00In: Class 12 Economics

How efficiency may increase if two firms merge?

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I followed the suggestion from my teacher to read a newspaper. Where I read an article about merging two major firms to become a big firm. In NCERT solutions of class 12 for economics, the question is given with the same scenario, not the answer.

class 12 economicsmacro economics class 12
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      MadhuPandeikar
      2022-04-06T05:10:19+00:00Added an answer on April 6, 2022 at 5:10 am

      It happens when one firm is not efficient, say, because of its obsolete technology. Whereas the other firm is inefficient, say, Because of its poor managerial skill. If both the firms merge, themselves, efficiency will increase in the form of lower cost as it will collectively make use of better technology and better managerial skill.

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    2. Bhaskar@3570
      2022-12-29T04:13:31+00:00Added an answer on December 29, 2022 at 4:13 am

      Hard Work

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