Synergy is created by the efficiencies derived from economies of scale and economies of scope and by sharing resources across the businesses in the merged firm.

Question

Quizplus · Accepted Answer

Synergy is indeed created by the efficiencies derived from economies of scale and economies of scope, as well as by sharing resources across the businesses in the merged firm. These factors allow the merged firm to achieve greater efficiency and profitability than either firm could have achieved individually.

Synergy Is Created by the Efficiencies Derived from Economies of Scale