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    Question

    Horizontal integration of firms may be actuated by the

    following motif
    A More profits by taking up additional functions Correct Answer Incorrect Answer
    B Risk reduction through improved market co-ordination Correct Answer Incorrect Answer
    C Specializing in the trade Correct Answer Incorrect Answer
    D Lowering costs through achieving operational efficiency Correct Answer Incorrect Answer

    Solution

    Lowering costs through achieving operational efficiency - Horizontal integration is when a firm acquires or merges with another company that operates at the same level in an industry. This can lead to lower costs due to economies of scale and more efficient operations.

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