Question

In the article, “Hopsopoly,” by Rob Larson, the merging of beer producers is examined. Suppose that the cell phone service companies Verizon and AT&T planned on merging. Identify one group that may lose from this merger and one group that may gain from the merger. Be sure to discuss using economic concepts why these groups may “lose” or “gain.”

Answer 1

Answer:-

Merger is condition in which high value firm or company will take over other low value or loss making or competing firm so when high value firm take over other firm so high value firm will get more market share , more profit, more customer base by merger and merged firm say ( Verizon ) will lose it base in totally and will loose it brand name and customer base to other firm say AT&T ( take over firm) , in this way AT&T will gain as its market share, customer base, more profit, less competition, good product quality and quantity, cost reduction and leadership will be there. and other firm will bear lose it will come to end for fore ever.