Question

It makes sense for a firm to vertically integrate only if ___________ transactions costs in the market > administrative costs within the firm administrative costs within the firm > transactions costs in the market administrative costs within the firm

Answer 1

Explanation:

➡️ Transaction costs.

In many cases, a major objective of vertical integration is to eliminate, or at least greatly reduce, the buying and selling costs incurred when separate companies own two stages of production and perhaps the physical handling costs as well.