Which of the Following Is an Example of a Horizontal

question 6

Multiple Choice

Which of the following is an example of a horizontal diversification?

• A)A new company selling a new product in the market
• B)An old company increasing its supply of existing products
• C)A company acquiring its raw materials from many parts of the world
• D)A new company trying to reintroduce an old product with improved advertising tactics

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Definitions:

Homothetic Preferences

Preferences where if a consumer prefers a bundle of goods A to B, they will also prefer a proportional scaling of A to the same proportional scaling of B, indicating consistent patterns of consumption regardless of income level.

Income

Earnings accumulated, often on a consistent schedule, from employment or investment gains.

Books

Physical or digital publications consisting of written, printed, or illustrated work.

Fixed Proportions

A production condition where inputs must be used in constant ratios to each other, without substitution possibilities, to produce a particular output.