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 above

Question

Quizplus · Accepted Answer

Vertical integration would allow the upstream and downstream firms to merge and operate as a single entity, thus resolving conflicts between them. Horizontally integrated and linearly integrated firms may not necessarily resolve conflicts between the two types of firms.

The Conflicts Between the Upstream and Downstream Firms Can Be