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Effects of a Merger on Consumers


Analyse the possible effects on consumers of a merger between two paper-producing firms.


Market Structures and Competition

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I. 🍃Introduction
- Definition of a horizontal merger
- Importance of analyzing the effects of a merger

II. Advantages of a horizontal merger
- Economies of scale
- Lower average costs of production
- Lower prices for consumers
- Increased profits
- More investment in R&D
- Improved quality of products
- 🍃Introduction of new products

III. Disadvantages of a horizontal merger
- Reduction in competition
- Possibility of a monopoly
- Higher prices for consumers
- Restriction of supply
- Closure of outlets
- Reduced choice for consumers
- Diseconomies of scale
- Lower quality of products

IV. 👉Conclusion
- Summary of advantages and disadvantages
- Importance of considering all factors before approving a merger.

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