"Economies of scale" is to think that expanding the scale of production can lead to an increase in economic effects. This concept originated from classical economics and industrial organization. On this basis, classical economics for the motivation of mergers and acquisitions holds that the merger between enterprises can expand the scale of enterprises, thus bringing economies of scale to the dominant enterprises. Then the theory of economies of scale is put forward. Through mergers and acquisitions, they can acquire the property rights and assets they need to scale up at low transaction costs.
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