What Kind of Integration Is Vertical Integration

question 62

Multiple Choice

What kind of integration is vertical integration?

• A)When the government outlaws discrimination against both short and tall people.
• B)When two firms join together in a conglomerate merger.
• C)When two firms related in the production process are owned by the same firm, as in a plywood manufacturer owning a logging company.
• D)All of the above

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Definitions:

Substantial Losses

Significant financial shortfalls resulting from business activities or investments, typically impacting a company's bottom line.

Competitive Industry

An industry characterized by a marketplace with many sellers and buyers, ensuring no single participant has significant market power.

Resources Move

The economic principle that factors of production, such as labor and capital, are allocated to various uses based on market dynamics and incentives.

Distribution Of Output

Refers to how the total output of goods or services is spread across various participants in an economy, affecting income and wealth distribution.