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Dynamic: A merge could lead to an improvement in dynamic efficiency since they are earning more
profit and can increase the rate of investment in research & development, training employees and
investment in human capital. This could lead to the development of new products and services; thus

Page 2

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Firms ­ Economies of scale

Technical: The firm will benefit from technical economies of scale since they will be gaining the
machinery and human capital from the other. This means that they are able to produce more output
with lower average costs but also benefit from division of labour due…




Love these notes, great evaluation

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