In general, the greatest economies of scale are possible with ____ mergers.
A) conglomerate
B) vertical
C) horizontal
D) integrated

Question

Quizplus · Accepted Answer

Horizontal mergers involve the combination of firms in the same industry and can lead to significant economies of scale by eliminating redundant activities, sharing resources, and increasing bargaining power with suppliers and buyers. Conglomerate and vertical mergers may also result in some economies of scale, but they are not typically as significant as those achieved through horizontal mergers. Integrated mergers are not a type of merger, but rather a business strategy in which a firm combines multiple stages of production or distribution under one ownership structure.

In General, the Greatest Economies of Scale Are Possible with ____