Isadvantages of merger between firms for both consumers and the firms (diagrams included)

Relevant economic terms: clearly defined
Relevant economic theory: clearly explained and applied
Where appropriate, diagrams are included and applied effectively

Cost for firms:
-Lack of expertise in new markets
-Diseconomies of scale,e.g. management problems, communication problems
-Cost of takeover potential damage to share price
-Risk of investigation by competition authorities

Cost for consumers or the public:
-Abuse of monopoly power or decrease competition
-Increased prices/loss of consumer surplus
-Increased price in the long run as market power/marketing costs increase
-Limit the choices available for a given product or service
-Loss of jobs or some workers may become redundant