A Merger Between Two Companies in Unrelated Fields of Business

Multiple Choice

A merger between two companies in unrelated fields of business

A) will always lead to economies of scale.
B) will generally increase the value of the unified firm compared to the value of the two companies before the merger because of the benefits of diversification.
C) may not have any synergistic effects.
D) will necessarily lead to an increase in the market power of the merged company.