In 1937,which Nobel Prize-winning economist first articulated the question of vertical integration,which stages of the value chain should be included within a firm's boundaries and why?
A) Ronal Coase
B) Adam Smith
C) David Ricardo
D) Milton Freidman

Question

Quizplus · Accepted Answer

Ronald Coase first articulated the question of vertical integration in his 1937 article "The Nature of the Firm." He argued that firms exist because of transaction costs, and that the decision of which stages of the value chain to integrate within a firm's boundaries depends on the comparative costs of using the market versus internal organization. This concept became known as the Coase theorem and was a significant contribution to the field of economics. Coase was awarded the Nobel Memorial Prize in Economic Sciences in 1991 for his work in the theory of the firm and transaction costs.

In 1937,which Nobel Prize-Winning Economist First Articulated the Question of Vertical