Concept:Vertical integration is the coming together of firms involved in different stages of the same production process.
Explanation:Under vertical integration, a firm may take over its suppliers, distributors, or retail outlets.
This helps the firm to secure raw materials and reduce intermediate costs.
It also improves coordination between the various stages of production and distribution.
Because the integrated firm controls more stages of production, its scale of operation increases.
At this larger scale, the firm can enjoy lower average costs per unit of output.
That means it can enjoy economies of large-scale production.
The aim is not mainly to take over existing markets, block competitors, or merely reduce advertising and management costs.
The most direct advantage of vertical integration is the cost benefit obtained from producing on a larger, well-coordinated scale.
Answer:D. enjoy economies of large-scale production