If production technological interdependency exists, the______ integration of the successive production stages______ production costs.
A)vertical; can reduce
B)horizontal; can reduce
C)horizontal; doubles
D)vertical; increases

Question

Quizplus · Accepted Answer

Vertical integration refers to a situation where a company owns or controls multiple stages of the production process. In this case, if production technological interdependency exists (meaning each stage relies on the technology of the previous stage), vertical integration can reduce production costs by streamlining the process and eliminating inefficiencies. Therefore, option A is the correct choice.

If Production Technological Interdependency Exists, The______ Integration of the Successive