While Firms Buy Many of Their Inputs Through the Open

question 14

Multiple Choice

While firms buy many of their inputs through the open market, there is often a desire to produce critical inputs. A common concern in producing an input yourself (internally) is that:

• A) the firm will find it too easy to manage quality.
• B) the firm will not minimize costs at a high enough level of output.
• C) outside competitors will learn about your inputs.
• D) your firm will get prompt supply of the input.

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