Question

2. Vertical integration.

Which of the following is an example of vertical integration within a firm?

A. GE produces a large number of products, many of which use the same components; this allows GE to save money by buying components from fewer suppliers.

B. HP and Dell both use Intel Pentium processors in their computers.

C. Major league baseball teams also own the rights to minor league players, whom they can "call up" to play in the majors once these minor league players have developed their skills while playing for the minor league teams.

A firm is more likely to ___________if there are many suppliers of the input competing for the firm's business.

The answer to the blank is either produce an input in-house or purchase an input from a supplier

Answer 1