One example of the factors to consider when deciding whether to opt for vertical integration is:
A)The number of rivals
B)The experience and background of top managers
C)The size of the firm
D)A reasonable match in terms of scale efficiency

Question

Quizplus · Accepted Answer

When considering vertical integration, it is important to assess the potential for scale efficiency. Vertical integration can lead to cost savings and greater control over the supply chain, but it only makes sense if there is a reasonable match in scale between the different stages of production. Therefore, D is the best choice as it considers the scale efficiency which is an important factor to consider when deciding whether to opt for vertical integration.

One Example of the Factors to Consider When Deciding Whether