Vertical integration in the manufacture of component parts increases an organization's scope,and the resulting increase in organizational complexity can raise a firm's cost structure.Which of the following is NOT a reason for this?

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Making all or part of a product in-house increases an organization's scope,and the resulting increase in organizational complexity can raise a firm's cost structure.There are three reasons for this.First,the greater the number of subunits in an organization,the more problems coordinating and controlling those units.Second,the firm that vertically integrates into component part manufacture may find that because its internal suppliers have a captive customer in the firm,they lack an incentive to reduce costs.Third,vertically integrated firms have to determine appropriate prices for goods transferred to subunits within the firm.

Vertical Integration in the Manufacture of Component Parts Increases an Organization's