Health Bars markets their snack bars as gluten and nut allergy free. If consumers with gluten or nut allergies become sick due to consuming gluten or nuts in Health Bars snacks, the managers of Health Bars face heavy legal fees. As a result, managers of Health Bars are more likely to produce all of their inputs rather than buy them due to issues with_______ .
A)transportation costs
B)trade secrets
C)quality control
D)economies of scale

Question

Quizplus · Accepted Answer

Quality control is the most relevant to the given scenario as the managers are concerned with ensuring that their product eliminates the risk of gluten and nut allergens, otherwise it could lead to heavy legal fees. To ensure strict quality control over their inputs, managers are more likely to produce them rather than buying it from other suppliers.

Health Bars Markets Their Snack Bars as Gluten and Nut