Economics (AS & A Level) · May / June 2026 · Paper 34 · Question 4
9708Growth and survival of firms
Two US chemical production firms merged. What is the likely benefit to the US chemical industry of this merger?
- Athere will be an increase in competition
- Bthere will be an increase in the price elasticity of supply
- Cthere will be greater technical economies of scale
- Dthere will be less government regulation needed
As printed in the paper
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Correct answer: C. there will be greater technical economies of scale
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