Vertical integration secures a higher ratio of added value to input costs for a company.

Name: Vertical integration secures a higher ratio of added value to input costs for a company.
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Question

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Vertical integration allows a company to control and own different stages of the production process, leading to a higher ratio of added value (revenue minus cost of goods sold) compared to input costs. This is because the company can eliminate intermediate costs and potentially reduce overall production costs.

Vertical Integration Secures a Higher Ratio of Added Value to Input