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    So Im currently writing an essay about the effects of a merger of two airline operators on the consumers and also the producers. If I was to say that this merger would reduce costs and increase output could I also talk about the environmental impact of this?
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    (Original post by mrsweg59)
    So Im currently writing an essay about the effects of a merger of two airline operators on the consumers and also the producers. If I was to say that this merger would reduce costs and increase output could I also talk about the environmental impact of this?
    Yes you could mention about environmental impact i suppose. Besides, you could include lower choice for consumers because there is less competition.. or the merge of 2 airlines, if accounting for more than 25% of the market share could result in higher monopoly power and they could abuse this monopoly power to charge consumers higher prices -> allocative inefficiency
 
 
 
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