Answered

A merger of two firms may increase economic efficiency by A decreasing average total cost through an increase in economies of scale B decreasing output to reduce marginal cost and equalize price C increasing economic profits but decreasing consumer surplus D increasing consumer surplus by decreasing economic profits E increasing consumer surplus by shifting the demand curve for the product to the right

Answer :

Answer:

A decreasing average total cost through an increase in economies of scale

Explanation:

In the case when two firms would be merged so this would rise in economic efficiency this would result in reduction in the average total cost via rise in the economies of scale

So according to the given situation, the option A is correct

And the remaining options are incorrect

The same would be relevant

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