The standard theory of vertical integration over the industry life cycle states:
A) vertical integration increases throughout the life cycle
B) vertical integration increases in the shakeout
C) vertical integration occurs primarily in the early and late stages
D) vertical integration decreases over the life cycle

Question

Quizplus · Accepted Answer

Vertical integration tends to occur primarily in the early stages of an industry's life cycle, when firms are establishing their positions and securing supply chains, and in the late stages, when they are seeking efficiencies and control over more of the production process to maintain competitiveness.

The Standard Theory of Vertical Integration Over the Industry Life