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3.3.3 Economies and diseconomies of scale

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Question 1

In 2024, two leading automated vertical farming operators, VertiGro and HydroCrop, completed a horizontal merger. The board of the newly integrated company, VertiHydro, claimed the consolidation would allow them to significantly reduce average cost per kilogram of produce by exploiting various internal efficiencies.

Explain one type of internal economy of scale that VertiHydro may achieve following this merger.

[2]

3.3.3 Economies and diseconomies of scale Questions

  1. A Level
  2. /Economics
  3. /3.3.3 Economies and diseconomies of scale