Alvin Electronics sells televisions,surround sound systems,and stereo components made by firms such as Sony,Bose,and Samsung.By selling a broad range of brands in the home entertainment product category,Alvin Electronics is most likely able to achieve ________.
A) idiosyncratic knowledge
B) zero-based channels
C) economies of scale
D) vertical integration
E) site specificity

Question

Quizplus · Accepted Answer

By selling a broad range of brands in the home entertainment product category, Alvin Electronics is able to achieve economies of scale. This means that they can produce more products, purchase more inventory, or utilize resources more efficiently than if they only sold a few brands. This leads to cost savings and increased profits.

Alvin Electronics Sells Televisions,surround Sound Systems,and Stereo Components Made by Firms