Economics 9708 · AS & A Level · 7.7

7.7 — practice question

What is one long-term advantage for a business of vertical integration?

  • Aa concentration on activities in which the firm has a comparative advantage
  • Ba reduction in the total costs involved in agreeing contracts with other firms
  • Can increase in the firm’s market share
  • Dimprovements in efficiency resulting from increased use of market incentives

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