The reason that most food processing firms do not backward integrate into farming is that:
A)Most food products are supplier through competitive markets where transaction costs are low
B)Farming and food processing are strategically dissimilar businesses
C)Both of these
D)Neither of these

Question

Quizplus · Accepted Answer

Most food processing firms do not backward integrate into farming because both reasons are valid: food products are typically supplied through competitive markets with low transaction costs, and farming and food processing are strategically dissimilar businesses.

The Reason That Most Food Processing Firms Do Not Backward