Question

Sometimes the producer of a product owns the businesses that supply them with raw goods to make that product AND own the stores that sell that product. This situation may best be called
A) laissez-faire.
B) supply and demand.
C) vertical integration.
D) horizontal integration.

Answer 1

The situation of having your own business to supply the raw materials to produce your end products and moreover be able to sell the products is an advantage. The price can be controlled by this business.

Question: This situation may best be called

Answer: C) vertical integration.

Answer 2

Hello!

The answer to your question is C) VERTICAL INTEGRATION.

In microeconomics, vertical integration is an arrangement in which a firm buys another company that supplies it from goods. Many companies use this strategy to gain control over their industry's value chain and to control the process of production.

Hope this helps you