Which of the Following Is Likely to Limit the Extent

question 127

Multiple Choice

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

• A)The 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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