One of the benefits of a company producing at multiple stages in a production chain rather than specializing in just one stage is:
A)increased within-brand competition.
B)increased transaction costs.
C)increased market power of the supplier.
D)elimination of the hold-up problem.

Question

Quizplus · Accepted Answer

By producing at multiple stages in a production chain, a company can eliminate the hold-up problem that may arise if they rely on other parties to produce key components or inputs. They have more control over their own supply chain and can ensure timely delivery and quality. This can result in cost savings and increased efficiency. Additionally, it allows for more flexibility in responding to market demand or changes in production technology.

One of the Benefits of a Company Producing at Multiple