Question

When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, ________ are created.

Answer 1

Answer: Synergies

Explanation: Synergy is achieved when people work together and achieve something greater than the sum of what they could've achieved alone.

When the output of some units in a firm can be used as inputs to other units, synergies develop, which can lower costs and generate profits.