Which of the Following Is Not a Condition That Favours

question 63

Multiple Choice

Which of the following is not a condition that favours the success of vertical integration?

• A) availability of capital
• B) availability of managerial talent
• C) required demand
• D) small market share
• E) the ability to operate an acquired vendor

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Definitions:

Individual Supply Curves

Graphical representations that show the relationship between the price of a good and the quantity of the good that a single producer is willing to supply.

Short-run

A period of time in which at least one input is fixed and cannot be changed, affecting the capacity to adjust production levels.

Long-run Equilibrium

A state in which all factors of production and inputs can be fully adjusted, and there are no fixed variables, resulting in market supply equalling market demand.

Marginal Cost

Marginal cost is the change in total production cost that comes from making or producing one additional unit of a good.