A leading scientific laboratory instrument manufacturer, 'OptiLab', merges with 'EduScientific', a major nationwide distributor that sells science equipment directly to schools and universities. Which one of the following is most likely to be an advantage of this merger?
Conglomerate diversification will immediately reduce the production costs of laboratory equipment.
External economies of scale will automatically lower national logistics and transport taxes.
Greater control over the final distribution channel, securing direct market outlets for OptiLab's products.
Horizontal integration will instantly eliminate all competing manufacturers of scientific instruments.
18 exam-style questions on Edexcel A A Level Economics 3.1 Business growth. Each one has a worked solution and a mark scheme showing where the marks go.