An Arrangement Whereby the Firm Owns, or Seeks to Own

question 52

Multiple Choice

An arrangement whereby the firm owns, or seeks to own, multiple stages of a value chain for producing, selling, and delivering a product or service is termed as ________.

• A) vertical integration
• B) horizontal integration
• C) decentralization
• D) centralization

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Definitions:

Marginal Cost

The expenditure required to produce a further single unit of a product or service.

Corporate Job

Employment within a large company, often implying a job with benefits, structure, and a hierarchical organization.

Teaching

The act or profession of instructing students in a particular subject or skill, aimed at transferring knowledge or skills.

Marginal Decision Making

The process of evaluating the additional benefits and costs of a decision when considering a small change in production or consumption.