A firm that is vertically integrated
A)participates in more than one successive stage of production.
B)has higher profits than firms that are not vertically integrated.
C)produces all of its own inputs.
D)relies on other firms to market its products.

Question

Quizplus · Accepted Answer

A vertically integrated firm is one that participates in two or more successive stages of production. This means that the firm both produces its own inputs and markets its products, rather than relying on other firms to do so. While higher profits may be a potential benefit of vertical integration, it is not a necessary condition for a firm to be considered vertically integrated.

A Firm That Is Vertically Integrated