Vertical integration can increase and decrease a firm's costs.

Name: Vertical integration can increase and decrease a firm's costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Vertical integration can increase a firm's costs as it involves acquiring or developing new capabilities in-house. On the other hand, it can decrease a firm's costs by eliminating the need to rely on outside suppliers or intermediaries, reducing transaction costs and increasing operational efficiency.

Vertical Integration Can Increase and Decrease a Firm's Costs