Upstream vertical integration of the firm

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A greater degree of upstream vertical integration of the firm can carry a risk of:

a. Increasing costs because of the lower-powered incentives of the in-house suppliers, and the fact that they are isolated from the market competition

b. Decreasing revenues because the suppliers that the firm will acquire and integrate will stop selling to the other incumbents

c. Increasing the extent of the information asymmetry in the entire industry

d. A greater likelihood of market failure

Reference no: EM132057519

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