When Hewlett Packard and Compaq Merged,the Combined Firm Was Larger

question 3

Multiple Choice

When Hewlett Packard and Compaq merged,the combined firm was larger and therefore could negotiate lower prices from suppliers.This benefit of horizontal integration is called

• A) economies of scale.
• B) reduction of excess capacity.
• C) cross-selling.
• D) product bundling.
• E) market power.

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