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Tasty Chicken Inc

Question 7

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Tasty Chicken Inc.is a large producer of chicken for grocery stores.It usually engages in a long-term contract with these stores to maintain demand for its product.However,Tasty Chicken is regularly plagued with rising and falling prices for its supplies: particularly chicken feed and new chicks.Should Tasty Chicken vertically integrate upstream,building or buying a hatching company and an animal feed company? What are the pluses and minuses of such a decision?

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