Which of the Following Illustrates Forward Vertical Integration

question 33

Multiple Choice

Which of the following illustrates Forward Vertical Integration?

• A)Microsoft starting a new division that designs and manufactures clothing
• B)Ford automotive buying additional machines for production
• C)Subway sandwich company buying a bakery to make the bread for their sandwiches.
• D)Sony buying trucks to deliver their finished goods inventories to their customers' warehouses

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Definitions:

Loss-leader Pricing

A pricing strategy where a product is sold at a price below its market cost to stimulate sales of more profitable products or services.

Above-market Pricing

A pricing strategy where goods or services are priced higher than the prevailing market rates, often to signal superior quality or prestige.

Price Setter

An entity in the market that has the power to influence or set the prices of goods or services, often due to market dominance.

Demand Factors

Factors that determine consumers’ willingness and ability to pay for products and services.