Vertical integration can lower firms' costs through each of the following except which one?
A)increasing the complexity of coordination
B)eliminating the hold- up problem
C)reducing information costs
D)creating synergies

Question

Quizplus · Accepted Answer

Vertical integration involves combining multiple stages of production or distribution within a single company. This will help to eliminate the hold-up problem, reduce information costs, and create synergies. However, it may increase the complexity of coordination between different stages, which could lead to higher costs. Therefore, option A is the correct choice.

Vertical Integration Can Lower Firms' Costs Through Each of the Following