If the minimum efficient scale in the production of aluminum exceeds the quantity of aluminum any individual siding producer buys, siding producers should integrate backward into aluminum production.

Question

Quizplus · Accepted Answer

Backward integration is not necessarily the best strategy if the minimum efficient scale of aluminum production is too large for individual siding producers, as it may not be cost-effective or feasible for them to produce aluminum efficiently.

If the Minimum Efficient Scale in the Production of Aluminum