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vaieri [72.5K]
3 years ago
5

Elemental Pharma Inc. recently acquired Crick Pharmaceuticals Inc. It now sells its own productsalong with the products original

ly sold by Crick Pharmaceuticals. As a result, Elemental Pharma'ssales force will also be marketing the acquired company's products. How will this horizontalintegration most likely affect Elemental Pharma?
A. It will lower its costs through economies of scale.
B. It will diminish its economic value creation.
C. Elemental Pharma will increase its cost of distribution.
D. Elemental Pharma will reduce the size of its product line.
Business
1 answer:
UNO [17]3 years ago
4 0

Answer:

Option A. It will lower its costs through economies of scale.

Explanation:

The reason is that the sales of both of the companies will increase and cost can be controlled by integration of departments like finance department, distribution department, etc. This will decrease the cost of the product which will be because of higher sales and cost benefits due to integration of department and this higher sales increases the production which reduces the cost. So the option A is correct.

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A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted c
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Answer:

$4.00

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3 years ago
He utilitarian approach proposes that actions and plans should be judged by their consequences. research reveals that stakeholde
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Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $7,000,000 to buy t
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