Vertical integration can
A)lower transaction costs due to lower costs of writing and enforcing contracts.
B)increase management costs and complexity.
C)reduce problems between owners and managers.
D)All of the above.

Question

Quizplus · Accepted Answer

Vertical integration can lower transaction costs due to lower costs of writing and enforcing contracts, but it can also increase management costs and complexity. Additionally, it can reduce problems between owners and managers as all aspects of the production process are under one entity. Therefore, all of the above statements are correct.

Vertical Integration Can