The opening quotation concerning Bath Fitter illustrates the following benefits of vertical integration:
A)Technical economies from the physical integration of processes
B)Avoiding the transactions costs involved monitoring and enforcing contracts with external suppliers
C)Economies of scale
D)None of the above.

Question

Quizplus · Accepted Answer

Vertical integration allows a company to reduce or avoid the transaction costs associated with monitoring and enforcing contracts with external suppliers, as it brings these processes in-house.

The Opening Quotation Concerning Bath Fitter Illustrates the Following Benefits