General Mills,a Producer of Breakfast Cereal,has Proposed an Acquisition of Kellogg,another

Multiple Choice

General Mills,a producer of breakfast cereal,has proposed an acquisition of Kellogg,another cereal producer.The combined firm is expected to be able to negotiate a reduced cost for the grain used in its cereal.What type of synergies are the most likely reason behind this merger?

A) economies of scale
B) vertical integration
C) economies of scope
D) monopoly gains
E) efficiency gains