Suppose a Company That Produces Furniture Wax Branches Out into Producing

question 12

Multiple Choice

Suppose a company that produces furniture wax branches out into producing a dusting product like Lemon-Dust-Away.If this expansion is efficient, the company must

• A)benefit from vertical integration
• B)benefit from horizontal integration
• C)experience economies of scale
• D)experience economies of scope
• E)have no transaction costs