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Question: other than the plastic production business you also own a...

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Other than the plastic production business, you also own a media business and have just founded a camera company which makes and sells sports cameras. Because the sports camera market is relative new and highly competitive, you have to fund your camera company with profits from plastic production business. This is an example of:

Economies of scale due to specialization

Economies of scope due to internal capital market

Diversification to reduce shareholder risk

Forward vertical integration

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