An increase in ﬁrm size so that diseconomies of scale are realized represents a potential gain from
an acquisition.

Name: An increase in ﬁrm size so that diseconomies of scale are realized represents a potential gain from an acquisition.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement is incorrect. An increase in firm size that results in diseconomies of scale can actually represent a potential loss from an acquisition, as it may result in decreased efficiency and higher costs.

An Increase in ﬁRm Size So That Diseconomies of Scale