The Primary Factor Determining the Degree of Vertical Integration in a Firm

question 25

Multiple Choice

The primary factor determining the degree of vertical integration in a firm is:

• A)Transaction costs
• B)Administrative costs
• C)The relative level of transaction costs to administrative costs
• D)The nature of an industry

---

Definitions:

Relative Refractory Period

A period shortly after the firing of a nerve during which the nerve cannot be stimulated to fire again at its maximum rate, but can still respond to a stronger than usual stimulus.

Firing Rate

The frequency at which a neuron discharges electrical impulses over a certain period of time.

Absolute Refractory Period

The period immediately following an action potential during which a neuron is completely unable to fire another action potential, regardless of the strength of the stimulus.

Action Potential

A temporary inversion of the electrical potential across the membrane of a nerve or muscle cell, allowing for the transmission of signals.