Which of the following mergers is most likely to experience economies of scope?
A) Merger between a beer brewery and a winery
B) Merger between a salon chain and a clothing chain
C) Merger between an airline and an internet company
D) Merger between a package delivery service and a coffee chain

Question

Quizplus · Accepted Answer

Economies of scope occur when producing or offering multiple products together is more cost-effective than producing them separately. A merger between a beer brewery and a winery is most likely to experience economies of scope because both businesses operate in the beverage industry, allowing them to share resources, distribution channels, and marketing efforts more efficiently than the other pairs, which are in unrelated industries.

Which of the Following Mergers Is Most Likely to Experience