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Which of the following is not a means by which a merger can increase revenues? Multiple...

Which of the following is not a means by which a merger can increase revenues? Multiple Choice Economies of scale. Strategic benefits. Synergistic benefits. Increases in market power.Incorrect Marketing gains. the answer is Economies of scale. But why?

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The correct answer is Economies of Scale because Economies of Scale decrease the cost of production but do not increase the Revenue. Increase of Revenue and Decrease of Cost are two different things though both of them results in more Income but The Question asked which is not a means by which merger can increase revenue. So Economies of Scale decrease costs but do not increase the Revenues.

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