In Vertical Integration, Forward Integration Occurs When a Firm

question 17

Multiple Choice

 In vertical integration, forward integration occurs when a firm

• A) attempts to achieve economies of scope.
• B) controls the customers for its main products.
• C) owns or controls the inputs it uses.
• D) generates sustainable cost savings.

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Definitions:

Employer

An individual or entity that hires and pays people to work on their behalf, often to produce goods or provide services.

Mixed

A type of economic system combining elements of both capitalism and socialism, featuring a blend of private and public ownership.

Command

A directive or an instruction, often used in the context of command economies where the government directs economic activity.

Capitalistic

Pertaining to an economic system where private owners control trade and industry rather than being state-owned.