Savings that come from combining the marketing and distribution of different types of related products are called:
A)horizontal integration.
B)vertical integration.
C)economies of scale.
D)economies of scope.

Question

Quizplus · Accepted Answer

Economies of scope refer to the cost savings that a company enjoys by producing related products in a more efficient manner. This could be achieved by using the same distribution network or marketing strategy for products that are complementary to one another. Horizontal integration refers to a company merging with or acquiring other companies that operate in the same industry, while vertical integration refers to a company taking over or integrating with other businesses that operate in different stages of the value chain. Economies of scale refer to the cost savings that come from producing large quantities of a product.

Savings That Come from Combining the Marketing and Distribution of Different