The Manager of Steel Works Learns of a New Technological

question 20

Multiple Choice

The manager of Steel Works learns of a new technological interdependency between the first stage and the intermediate stage of production. If Steel Works currently contracts with another firm for the intermediate stage of production, which of the following is true?

• A)The manager has less of an incentive to integrate backward.
• B)The manager has more of an incentive to integrate forward.
• C)The manager has less of an incentive to integrate forward.
• D)The manager has more of an incentive to integrate backward.

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Definitions:

Price Rise

An increase in the cost of goods or services over a period.

Communal Meal

A meal shared among a group of people, often emphasizing social connection and community.

Alcohol

A colorless volatile liquid, chemically denoted as ethanol or ethyl alcohol, commonly found in beverages and used as a solvent or fuel.

Drugs

Substances used for medical treatment, or those that affect the mind or body when consumed.