The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as
A)vertical integration.
B)process flexibility.
C)process planning.
D)capital intensity.

Question

Quizplus · Accepted Answer

Vertical integration refers to the degree to which a firm owns the various stages in its production process, from raw materials to final products. By controlling the inputs and outputs at each stage, the firm can achieve greater economies of scale, reduce costs, and improve quality control. Process flexibility, process planning, and capital intensity are related concepts but do not directly address the issue of vertical integration.

The Extent to Which the Firm Will Produce the Inputs