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Cost-reduction generates GroIt costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges
Cost-reduction generates GroIt costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges with firm B, it can produce both the five radios and the five batteries for $1500. The firm has experienced Group of answer choices Economies of Scale Economies of Scope Diseconomies of Scale Diseconomies of Scopeup of answer choices Increases in long-run profitability Increases in long-run profitability only if the cost reduction is difficult to imitate Decreases in long run profitability No change in profitability
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