The conflicts between the upstream and downstream firms can be resolved,
A)if the two firms form a horizontally integrated firm.
B)if the two firms form a vertically integrated firm.
C)if the two firms form a linearly integrated firm.
D)none of the options

Question

Quizplus · Accepted Answer

The conflicts between upstream and downstream firms can be resolved if both firms form a vertically integrated firm. This means that the two firms will merge, and one company will produce both the upstream and downstream products, thereby eliminating the conflicts that arise during the transfer of goods between the two firms. This can also improve the efficiency of the production process and reduce costs.

The Conflicts Between the Upstream and Downstream Firms Can Be