An Attempt to Explain That Vertical Integration Is More Efficient

question 40

Multiple Choice

An attempt to explain that vertical integration is more efficient than contracting for goods and services in the marketplace when the transaction costs of buying goods on the open market becomes too great has been proposed by

• A)population theory.
• B)institution theory.
• C)transaction cost economics.
• D)trickle down economics.
• E)transaction growth theory.