Define Vertical Integration and Differentiate Between Forward Vertical Integration and Backward

question 67

Essay

Define vertical integration and differentiate between forward vertical integration and backward vertical integration.

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Definitions:

Customers Served

The number of individual clients or consumer accounts that a business has provided with goods or services.

Capital Costs

Expenses incurred in acquiring or upgrading physical assets such as buildings and machinery.

Labor-Intensive

Describing a process or industry that requires a large amount of labor to produce its goods or services.

Marginal Product

The additional output generated by employing one more unit of a specific input, while holding other inputs constant.