A firm's vertical dimension refers to
A)its ability to grow its profits.
B)the size of its headquarters building.
C)the degree to which it participates in the various stages of producing the products and services it sells.
D)the downstream stages of production.

Question

Quizplus · Accepted Answer

Vertical dimension refers to the degree to which a firm participates in the different stages of production of the products and services it sells. It represents the vertical integration of a firm. A firm can be vertically integrated in both upstream (backward) and downstream (forward) direction. Upstream integration involves the firm's involvement in the early or initial stages of production processes. Downstream integration involves the involvement of a firm in the later or final stages of production processes. Therefore, option C, "the degree to which it participates in the various stages of producing the products and services it sells" is the correct answer.

A Firm's Vertical Dimension Refers to