Hi, how to answer this question?

17. Are the statements mentioned in a) and b) below true or false? Justify your answer.

a) The transaction costs theory on mergers (Coase, 1937) implies that merging with suppliers is always advisable as it will reduce firms transaction costs. (50 marks)

b) Mergers inspired by vertical integration motives are very rare nowadays, as transaction costs have decreased substantially since the second merger wave. (50 marks)