Hewlett Packard and Compaq Recently Completed a Merger

question 59

Multiple Choice

Hewlett Packard and Compaq recently completed a merger.The combined firm is larger and therefore can 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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Definitions:

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or unhealthy ways of thinking, thus influencing behavior and emotional state.

Self-critical Patterns

Persistent negative thoughts and evaluations about oneself that can affect mental health and wellbeing.

Behavior

The actions or reactions of an object or organism, usually in relation to the environment or stimuli.

Psychoanalytic

Relating to the psychological theory and therapy developed by Sigmund Freud that focuses on unconscious processes influencing behavior.