Which of the following would most likely be reduced by vertical integration?

Question

Quizplus · Accepted Answer

Vertical integration involves a company controlling multiple levels of the supply chain, thereby reducing transaction costs. By owning and controlling the different stages of production, the company can eliminate the costs associated with contracting and coordinating with multiple suppliers and intermediaries. Thus, transaction costs would most likely be reduced by vertical integration. Export tariffs, component prices, and product returns are not directly related to vertical integration.

Which of the Following Would Most Likely Be Reduced by Vertical