It may be advantageous to vertically integrate when
A) lower transaction costs and improved coordination are vital and achievable.
B) the minimum efficient scales of two corporations are different.
C) flexibility is reduced, providing a more stationary position in the competitive environment.
D) various segregated specializations will be combined.

Question

Quizplus · Accepted Answer

Vertical integration can be advantageous when it leads to lower transaction costs and improved coordination between different stages of production or service delivery, as it allows for more streamlined operations and potentially higher efficiencies.

It May Be Advantageous to Vertically Integrate When