5.9k views
5 votes
How can economies of scale be achieved through vertical integration? (economies of scale, vertical integration, corporation

User Zinking
by
6.4k points

1 Answer

4 votes

Answer: Vertical integration gives a company better economies of scale. Large companies employ economies of scale when they are able to cut costs while ramping up productions—they take advantage of their size. For example, a company could lower the per-unit cost by buying in bulk or by reassigning employees from failing ventures.

Explanation: read the one above, i wrote about vertical integration

User Alec Jacobson
by
6.1k points