Which of the following is a benefit that fmns should expect to gain from the use of horizontal integration?
A)Reduced risk of corning into conflict with the FTC
B)Better realization of economies of scale
C)Greater control over the entire supply chain
D)Reduced risk of holdup
E)Reduced need for investment in core activities

Question

Quizplus · Accepted Answer

Horizontal integration involves merging with or acquiring companies that are in the same industry or at the same stage in the supply chain. This can result in economies of scale, which allow the firm to produce more efficiently and at a lower cost. Therefore, option B is the correct answer. Options A, C, D, and E are not necessarily associated with horizontal integration.

Which of the Following Is a Benefit That Fmns Should