Which of the Following Is Least Likely to Provide a Motivation

question 101

Multiple Choice

Which of the following is least likely to provide a motivation for vertical integration?

• A) A continuous source of raw materials
• B) A desire to spread fixed costs across more output
• C) Access to an efficient distribution channel
• D) Acquisition of an established customer base

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Definitions:

Per Capita Real GDP

This is a measure of the average economic output per person, adjusted for inflation, in a specific area.

GDP Deflator

A measure for evaluating the price index of all fresh, domestically produced, final goods and services in an economy.

Population

The total number of people inhabiting a particular territory or geographic area.

GDP Deflator

An economic metric that converts the money-value measure of GDP to a measure of real GDP by accounting for inflation or deflation.