Select the Greatest Advantage of Horizontal Channel Integration

question 187

Multiple Choice

Select the greatest advantage of horizontal channel integration.

• A) The flexibility of the channel is decreased.
• B) The markets are more heterogeneous.
• C) The expanded number of units is coordinated.
• D) Efficiencies in advertising, marketing research, and purchasing are increased.
• E) Planning and research are increased to cope with increased competition.

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Definitions:

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good versus what they actually receive, typically due to market price.

Market Equilibrium

A state where market supply meets market demand, leading to stable prices and quantities.

Producer Surplus

The variance between what producers are prepared to sell a product or service for and the actual revenue they achieve.

Equilibrium Price

The price in the market where the amount of goods being offered meets the amount of goods consumers want.