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A manager argues that a part of the production process should be integrated into the firm to capture profit that the contracting firm is making
A manager argues that a part of the production process should be integrated into the firm to capture profit that the contracting firm is making instead. Why might this be a bad argument? Question 2 options: a) The contracting firm could have special expertise that keeps costs down b) The contracting firm may have economies of scale that increase profits c) The contracting firm may only be making accounting profits, not economic profit d) All of the above
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