If coffee company Maxwell House were to acquire a coffee plantation in Brazil, it might achieve market power through vertical integration.

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Vertical integration refers to a type of business expansion in which a company acquires or merges with another company that is situated in the production process of the main company's products, i.e., it integrates with a supplier or a distributor. In this given scenario, if Maxwell House, a coffee company, acquires a coffee plantation in Brazil, which is a supplier, then it would establish vertical integration. Such integration might result in market power for the company as they would have control over the production process, enabling them to increase efficiency and reduce costs, ultimately leading to a competitive advantage in the market.

If Coffee Company Maxwell House Were to Acquire a Coffee