give explaination

A horizontal merger can generate efficiency gains which stem from Instruction: you may choose more than one option (be advised that wrong choices as well as failing to choose a correct option will deduct points from the points earned by choosing correct options; in any case the score cannot be negative) production is adjusted to local demand with the effect that transportation costs are reduced synergies by pooling certain functions within the merged firms. scale economies at a single factory plant. large innovative capacity leading to future efficiency gains production reshuffling among the plants that belong to the merged firms so that relatively efficient plants that were under-utilized before the merger turn out larger volumes