Multiple Choice
Which of the following benefits of diversification explains the idea that a multiproduct firm is an efficient choice when the costs of doing business complicate inter-firm coordination?
A) Use of internal capital markets
B) Economies of scale and scope
C) Economizing on transaction costs
D) Diversifying shareholder portfolios
E) Identifying undervalued firms
Correct Answer:
Verified
Correct Answer:
Verified
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