Which of the following is a benefit that firms should expect to gain from the use of horizontal integration?
A) Expanded control over stages of the supply chain
B) Better realization of economies of scale
C) Shared risk with another firm
D) Reduced risk of holdup
E) Reduced investments in noncore activities

Question

Quizplus · Accepted Answer

Horizontal integration allows firms to merge with or acquire competitors, leading to increased market share and better realization of economies of scale due to larger production volumes and reduced costs per unit.

Which of the Following Is a Benefit That Firms Should