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Google decides to create standard “health” information website, and put it as a top search result for every health-related search on its dominant search engine. Which of the following concepts best justifies this type of diversification? A. Anticompetitive economies of scope B. Economies of scale C. Financial economies of scope D. Empire building

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Google decides to create standard “health” information website, and put it as a top search result for every health-related search on its dominant search engine. Which of the following concepts best justifies this type of diversification?

 

  1. Anticompetitive economies of scope
  2. Economies of scale
  3. Financial economies of scope
  4. Empire building

✅ Answers (1)

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Private answer
  • Anticompetitive economies of scope

Explanation:

This is possible when a firm as economies of scope because it is easier for google to provide search engine services and a website at the same time, than another firm providing the health website and search engine separately. Now, using market power to produce two or more products and effectively providing them in a manner that prevents competition, is described as anti-competitive economies of scope. Google does not want the health website to face competition from other website on the same niche, so it prevents that by having its website rank at the top for every health based search.

 

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Answered on June 25, 2020 10:07 pm

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