When a firm controls the production and marketing of diverse products,this is known as
A) horizontal integration.
B) diversification.
C) economies of scale.
D) diseconomies of scale.
E) vertical integration.

Question

Quizplus · Accepted Answer

Diversification refers to a strategy where a company enters into new markets or produces new products that are different from its existing portfolio. This allows the firm to spread its risks and take advantage of new opportunities. Horizontal integration involves acquiring or merging with companies that are at the same stage of the production or distribution process, while vertical integration involves integrating with companies that are either upstream (suppliers) or downstream (distributors) in the production or distribution process. Economies of scale refer to the cost advantages that arise due to increased production or size, while diseconomies of scale occur when a firm becomes too large and its costs start to rise.

When a Firm Controls the Production and Marketing of Diverse