O-LevelEconomicsMicroeconomic decision makers2281/11 · Oct/Nov 2010 · Q181 Mark

A milk processing company takes over a group of dairy farms before merging with a chain of supermarkets. Which types of integration have taken place?

Adiversification followed by horizontal

Bhorizontal followed by vertical backward

Cvertical backward followed by vertical forward

Dvertical forward followed by diversification

✓ Correct answer

C: vertical backward followed by vertical forward

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2010 Paper 1 Variant 1, question 18.

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