The Disadvantage of Vertical Integration Is That

question 145

Multiple Choice

The disadvantage of vertical integration is that:

• A) relationship-specific exchange may cause hold-up.
• B) long-term contracts may be inflexible.
• C) the principal-agent problem causes shirking.
• D) firms no longer specialize in what they do best.

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Definitions:

Persistent Inflammation

Ongoing or chronic inflammation in the body that can lead to various diseases, including arthritis, heart disease, and diabetes due to continuous activation of the immune system.

Clogged Arteries

A condition caused by the buildup of plaque inside the blood vessels, leading to reduced blood flow and increased risk of cardiovascular diseases.

Asthma

A chronic respiratory condition characterized by episodes of airway constriction, leading to wheezing, coughing, and shortness of breath.

Expressing Anger

This term covers the various ways individuals may display or communicate feelings of anger, from verbal expressions to physical reactions.