Argyle is a large, vertically integrated firm that manufactures sweaters from a rare type of wool produced on its sheep farms. Argyle has adopted a strategy of selling wool to companies that compete against it in the market for sweaters. To the extent that overall profits are enhanced by selling both wool and sweaters, it is rational for Argyle to do this.
However, if simply selling wool to other downstream suppliers reduces overall profits, it may be able to increase profits by adopting which of the following strategies?
Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.
check all that apply
Price-cost squeeze
Vertical foreclosure
Raising rivals' costs
