Footflyer Publishing is considering procuring editorial services from outside sources. Which of the following should NOT weigh in Footflyer's decision?
A) The administrative costs of keeping this function in-house
B) The transaction costs of procuring the outside services
C) The economies of scope achieved through vertical integration with another publisher
D) Possible damage to the firm's core competencies

Question

Footflyer Publishing is considering procuring editorial services from outside sources. Which of the following should NOT weigh in Footflyer's decision? 
A) The administrative costs of keeping this function in-house
B) The transaction costs of procuring the outside services
C) The economies of scope achieved through vertical integration with another publisher
D) Possible damage to the firm's core competencies

Quizplus · Accepted Answer

The economies of scope achieved through vertical integration with another publisher should weigh in Footflyer's decision as it is a potential benefit to the company. Therefore, the answer is C.

Footflyer Publishing Is Considering Procuring Editorial Services from Outside Sources