Several years ago, Apple purchased, cool headphone maker Beats. Apple continues to sell Beats headphones that work with non-apple products and apple headphones that are not Beats branded. Both Beats and Apple headphones are not vertically integrated into production and continue to maintain separate production. Which of the following is not a consistent justification for the acquisition? Beats has more relationships with retailers than Apple.

Apple hopes to reduce competition in the headphone market.

Beats had particular knowledge of the "cool" culture.

Apple has lower costs in headphone production because it has larger production scale.