When the intermediate market is perfectly competitive, interdependencies of subunits are minimal, and there are additional costs to the corporation as a whole in using the market instead of transacting internally.

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In a perfectly competitive market, interdependencies of subunits are minimal, and there are no additional costs to the corporation as a whole in using the market instead of transacting internally.

When the Intermediate Market Is Perfectly Competitive, Interdependencies of Subunits