Final answer:
Vertical integration in the poultry market refers to the situation where businesses owning chicken farms also handle the processing and distribution of meat. This integrated approach allows companies to control various production stages, and can lead to increased market power and efficiency.
Step-by-step explanation:
Vertical integration in the context of the poultry market, where chicken is sold as meat, refers to the scenario where the businesses that own chicken farms are involved in multiple stages of the production process. This includes raising the chickens, processing the meat, and distributing it to consumers. Specifically, the answer to the student's question about what vertical integration means in the poultry market is: b. the businesses that own the chicken farms also prepare and distribute the meat. This model of integration can streamline operations, reduce costs, and increase control over the entire value chain from farm to table.
This is seen in contrast to the other options where multiple small farmers produce meat (a), meat is produced overseas (c), or meat is sold at uniform conditions (d). Vertical integration tends to lead to limited market competition and could result in farmers receiving a lower share of the value of the final product. The concentration of the agribusiness industry and the process of vertical integration can affect market structures and the economies of scale.