A firm that produces its own output is engaging in ______ integration,while a firm that markets its own good is engaging in ______ integration.
A)vertical; horizontal
B)downstream; upstream
C)forward; backward
D)backward; forward

Question

Quizplus · Accepted Answer

A firm that produces its own output is engaging in backward integration because it is moving upstream in the supply chain to control the production process. When a firm markets its own goods, it is engaging in forward integration, as it is moving downstream in the supply chain to control the distribution or sales process.

A Firm That Produces Its Own Output Is Engaging in ______