PepsiCo Purchased KFC So That It Could Replace Coke Products

question 82

Multiple Choice

PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants.This is an example of which of the following strategies?

• A) Horizontal integration
• B) Vertical integration
• C) Low-cost strategy
• D) Global strategy
• E) Diversification strategy

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, often reflecting gains from trade.

Tariff Revenue

Income generated by a government from imposing tariffs on imported goods.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from producing and consuming a good or service.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.