The strategy whereby a firm makes most of its own inputs is called:
A) economies of scope.
B) horizontal integration.
C) economies of scale.
D) vertical integration.

Question

Quizplus · Accepted Answer

Vertical integration is when a company owns and controls its own suppliers or distributors. By integrating vertically, firms can reduce transaction costs and have more control over their supply chain, resulting in greater efficiency and potentially lower costs. Additionally, vertical integration can help firms secure access to essential inputs and improve product quality.

The Strategy Whereby a Firm Makes Most of Its Own