Which of the Following Is Likely to Limit the Extent

question 165

Multiple Choice

Which of the following is likely to limit the extent of a firm's vertical integration?

• A)a managers' bounded rationality
• B)a small minimum efficient scale of producing inputs relative to the firm's input requirements
• C)the fact that the quality of inputs is easily determined at the time of purchase
• D)the presence of a large number of suppliers of the firm's inputs
• E)a high transaction cost of contracting with resource suppliers

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Definitions:

Mean

A statistical measure that represents the average value of a set of numbers.

Range

in statistics, is the difference between the highest and lowest values in a data set.

Corpus Callosum

The thick bundle of nerve fibers that connects the left and right hemispheres of the brain.

Myelination

The process of forming a myelin sheath around nerves to increase the speed at which impulses propagate.