Economies of scale in production and distribution would generally be highest in:

A) vertical mergers.
B) product extension mergers.
C) horizontal mergers.
D) any form of merger.

Question

Economies of scale in production and distribution would generally be highest in:A) vertical mergers.B) product extension mergers.C) horizontal mergers.D) any form of merger.

James Kelly · Accepted Answer

Final Answer : C, Explanation :  Economies of scale in production and distribution are highest in horizontal mergers as the merging companies are producing similar products, and the combined production volume enables them to take advantage of larger-scale production processes and distribution networks. Vertical mergers involve merging companies from different levels of the supply chain, and product extension mergers involve merging companies with a complementary product line, which may not result in significant economies of scale.

Economies of scale in production and distribution would generally be highest in:

A) vertical mergers.
B) product extension mergers.
C) horizontal mergers.
D) any form of merger.

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