Which of the following is a strategy that can be used only by vertically integrated firms?
A) Vertical foreclosure
B) Predatory pricing
C) Limit pricing
D) Penetration pricing

Question

Quizplus · Accepted Answer

Vertical foreclosure, also known as vertical integration foreclosure, occurs when a vertically integrated firm uses its control over an upstream input to harm downstream rivals by restricting their access to the input. This strategy can only be used by firms that control both the upstream and downstream stages of the production process, i.e., vertically integrated firms. Predatory pricing, limit pricing, and penetration pricing can be used by both vertically integrated and non-integrated firms.

Which of the Following Is a Strategy That Can Be