1) what are some of the major reasons why firms vertically integrate? one reason why firms vertically integrate is
a. to promote opportunistic behavior.
b. to take on more government regulations.
c. to avoid varying the production process.
d. to ensure the supply of inputs.
e. to pay transation costs.
2) firms may not vertically integrate when their industry is
a. stable with large fixed costs.
b. large and specialization is profitable.
c. shrinking with economies of scale.
d. small with market power

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