Asked by Tyrik Lawson on Jul 12, 2024
Verified
Firms that have several plants that produce the same or related products are said to be:
A) horizontally integrated.
B) vertically integrated.
C) conglomerates.
D) cooperatives.
Horizontally Integrated
A strategy where a company expands its operations into the same level of the supply chain within an industry.
- Understand the economic considerations in vertical and horizontal integration decisions within firms.
Verified Answer
AB
Alexander BigsbyJul 15, 2024
Final Answer :
A
Explanation :
Horizontal integration refers to the process of a company acquiring or merging with a similar or a competing company operating on the same level of the supply chain to increase its market share and achieve economies of scale. In this case, a firm that has several plants producing the same or related products can be said to be horizontally integrated.
Learning Objectives
- Understand the economic considerations in vertical and horizontal integration decisions within firms.