Which of the Following Is an Example of FORWARD Integration

question 45

Multiple Choice

Which of the following is an example of FORWARD integration?

• A) a group of farmers decision to form a cooperative to build and operate a roadside market to sell fresh produce.
• B) the decision by the owner of a sawmill to buy a large woodlot adjacent to the mill.
• C) an auto manufacturer deciding to purchase interior door panels from suppliers rather than manufacturer them internally.
• D) a food processing company's decision to enter into long term supply contracts with farmers.

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Definitions:

Resources Scarcity

The economic problem of having seemingly unlimited human wants in a world of limited resources.

Consumer's Income

The total amount of earnings available to an individual or household to spend or save after taxes.

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased with a given budget at current prices.

Money Income

The total amount of money or monetary earnings received by an individual or household over a certain period of time.