How is vertical integration linked with the two forms of economic organization?
A)It is part of the administrative costs
B)It is part of the market costs
C)It is one of the dimensions of corporate scope, which is part of the administrative mechanism
D)All of the above

Question

Quizplus · Accepted Answer

Vertical integration is one of the dimensions of corporate scope, which is part of the administrative mechanism. It allows a company to expand its operations and control different stages of the production process, which can lead to improved efficiency and reduced costs. This makes it closely linked with the administrative mechanism of economic organization, as opposed to the market mechanism where companies rely on external suppliers and customers. Therefore, options A and B are not correct as they do not accurately reflect the relationship between vertical integration and the two forms of economic organization.

How Is Vertical Integration Linked with the Two Forms of Economic