The motive to merge that is based on the idea that combining manufacturing so produce a larger scale of production that results in lower costs per unit produced is best described as:
A) diversification.
B) economies of scale.
C) efficiencies of scope.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantage that arises with increased output of a product, leading to a reduction in the per-unit cost of production as the scale of production expands.

The Motive to Merge That Is Based on the Idea