What Happens in Backward Integration

question 29

Multiple Choice

What happens in backward integration?

• A) The firm begins to control the outlets for its products.
• B) The firm buys other non-related firms.
• C) A firm takes over operations that were previously the responsibility of its suppliers.
• D) The firm merges with similar firms from other countries.
• E) The firm expands its geographical reach.

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Definitions:

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply by averaging the start and end points of a range.

Drug Interdiction

The policy or practice of preventing the importation, trafficking, and use of illegal drugs by enforcement or military means.

Supply Curve

A visual chart illustrating the connection between a product's price and the amount of the product that sellers are ready to manufacture and offer for sale.

Price Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good, indicative of the flexibility of producers.