Vertical integration can lower firms' costs through each of the following except which one?
A)reducing information costs
B)increasing the required areas of managerial expertise
C)creating synergies
D)increasing flexibility by eliminating a contract with an input supplier

Question

Quizplus · Accepted Answer

Vertical integration may increase the required areas of managerial expertise, which could lead to higher costs due to more complex management structures and additional training needs. The other options - reducing information costs, creating synergies, and increasing flexibility by eliminating a contract with an input supplier - are all potential benefits of vertical integration that could lead to lower costs for the firm.

Vertical Integration Can Lower Firms' Costs Through Each of the Following