Multiple Choice
A firm that produces mouthwash branches out into producing toothpaste.If this expansion reduces its average cost of production,which of the following can be concluded about this firm?
A) The firm is benefiting from vertical integration.
B) The firm is benefiting from horizontal integration.
C) The firm is experiencing economies of scale.
D) The firm is experiencing economies of scope.
E) The firm is not incurring any transaction cost.
Correct Answer:
Verified
Correct Answer:
Verified
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