Elemental Pharma Inc

Multiple Choice

Elemental Pharma Inc. recently acquired Crick Pharmaceuticals Inc. It now sells its own products along with the products originally sold by Crick Pharmaceuticals. As a result, Elemental Pharma's sales force will also be marketing the acquired company's products. How will this horizontal integration most likely affect Elemental Pharma?

A) It will lower its costs through economies of scale.
B) It will diminish its economic value creation.
C) Elemental Pharma will increase its cost of distribution.
D) Elemental Pharma will reduce the size of its product line.