Question

What was an effect of vertical integration?

a. it allowed ultimate control of production and a cheaper product and greater profit.

b. it generated mass corruption within the government after the labor unions were dispersed.

c. it provided an opportunity for government officials to have their hands in big business.

d. it allowed ultimate use of immigrant labor and created a cheap work force.

e. it was a way for big business to pool and split earnings, creating mass corruption.

Answer 1

Vertical integration occurs when a company either purchases the supplier where they get their raw materials or purchase the next step down the value chain. This allows for INCREASED controls and cheaper products because you eliminate the markups from supplier to producer. This allows companies to make even more profit.

Answer 2

a. it allowed ultimate control of production and a cheaper product and greater profit.

Step-by-step explanation:

Vertical integration is when a company acquires or creates a branch of the company to create and to produce the primary resources to create their products, this allows the compnay to gain control over the production and have a greater profit since it increments the profit of the production of the primary resources and the final product.