A firm that backward vertically integrates
A)moves downstream in the production process.
B)requires that the production process be relatively simple.
C)has to merge with another firm.
D)may be producing its own inputs.

Question

Quizplus · Accepted Answer

Backward vertical integration involves a firm producing its own inputs, such as acquiring a supplier or a raw material provider. This allows the firm to have greater control over the quality and availability of its inputs, as well as potentially reducing costs.

A Firm That Backward Vertically Integrates