Vertical Integration

question 43

Multiple Choice

Vertical integration

• A)is always driven by profitability concerns.
• B)results in lower transaction costs.
• C)may be undertaken to avoid government regulations.
• D)hampers timely delivery of inputs into the production process.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.