Lime's Business Decision to Buy Scooters That Are Not Optimized

question 18

Multiple Choice

Lime's business decision to buy scooters that are not optimized for its purposes because the option to manufacture their own scooters would result in large fixed costs. Which of the following disadvantages of vertical integration does this represent?

• A) Increasing cost structure
• B) Technological change
• C) Demand unpredictability
• D) Mismatches in optimal scale
• E) Vertical disintegration