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In: Economics

A merger occurs when two firms join together to form one. The new firm will have...

A merger occurs when two firms join together to form one. The new firm will have an increased market share, which helps the firm gain economies of scale and become more profitable. The merger will also reduce competition and could lead to higher prices for consumers.

Why does the Justice department sometimes agree with mergers of two companies and sometimes disagree with the mergers of two companies? Please make your own contribution to the above statement

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