Backward vertical integration refers to:
A) the purchase of competitive firms.
B) the installation of production facilities to produce inputs for the production of final products.
C) the placing of minorities in charge of production processes.
D) the installation of production facilities to consume the outputs of the production system.

Question

Quizplus · Accepted Answer

Backward vertical integration refers to the installation of production facilities to produce inputs for the production of final products. This means a company is integrating its operations with its suppliers to gain better control over the supply chain and ensure a regular supply of quality inputs at lower costs.

Backward Vertical Integration Refers To