Having more flexibility, or being less vertically integrated, is more valuable when _________.
A)a firm can create its own raw materials
B)technology used is outdated
C)the cost to perform an activity remains the same
D)new technologies are innovated

Question

Quizplus · Accepted Answer

When new technologies are innovated, having more flexibility allows a firm to adapt and incorporate these new technologies more easily. Being less vertically integrated allows a firm to partner with other companies for specialized tasks and take advantage of their expertise and resources. Therefore, the option D is the best choice.

Having More Flexibility, or Being Less Vertically Integrated, Is More