A Good Example of Vertical Integration Is

question 29

Multiple Choice

A good example of vertical integration is

• A) a producer of organic vegetables deciding to expand into the production of organic fruits.
• B) a supermarket chain acquiring a distributor of fresh fruits and vegetables.
• C) a crude oil refiner purchasing a railroad company.
• D) a hospital opening a nursing home for the aged.
• E) a maker of prescription drugs acquiring a chain of hospitals.

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Definitions:

Economically Advanced

An economically advanced country is characterized by a high level of income, diversified economy, and advanced technological infrastructure.

Poverty Rate

The percentage of the population that lives below the national poverty line, reflecting the proportion of the population experiencing poverty.

Income Redistribution

Economic policies or mechanisms designed to transfer income and wealth from certain individuals or groups to others to achieve social or economic objectives.

Total Utility

The total satisfaction or benefit received by consuming a certain amount of a good or service.