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Shkiper50 [21]
3 years ago
10

PureSource Pharma Inc. recently acquired BioChem Pharmaceuticals Inc. It now sells its own products along with the products orig

inally sold by BioChem Pharmaceuticals. As a result, PureSource Pharma's sales force will also be marketing the acquired company's products. How will this horizontal integration most likely affect PureSource Pharma?
Business
1 answer:
Licemer1 [7]3 years ago
6 0

Answer: Puresource Pharma would have to reduce it's cost

Explanation:

Horizontal integration could be defined as the merge between two or more companies that carry out similar functions or market in production.

Puresource Pharma would have to reduce it's cost of product and either sell below or same cost as their acquired company's product. This would help promote her market and would give a monopoly for them for the market for both of them.

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Answer:

1.

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2.

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3.

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The required rate of return for a stock with a beta of 1.7 is,

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