Which of the following would not be an efficiency gain for a firm that integrates vertically?

Question

Quizplus · Accepted Answer

Economies of scope refer to cost advantages that result when firms provide a variety of products rather than specializing in the production or delivery of a single product. This concept is not directly related to vertical integration, which involves the combination of two or more stages of production or distribution under a single firm's control to increase that firm's efficiency or reduce costs. Vertical integration is more about streamlining operations, reducing transaction costs, and ensuring supply chain reliability rather than diversifying product offerings.

Which of the Following Would Not Be an Efficiency Gain