A producer of ballpoint pens has been purchasing ink from an ink supplier and is considering acquiring the ink supplier. Would the pen company be more or less likely vertically integrate by buying the ink manufacturer if the government imposes an ink sales tax?

If the government taxes ink sales, then the ballpoint pen company

A$.$ will be more likely to vertically integrate to increase revenue.

B$.$ will be more likely to vertically integrate to avoid paying ink sales taxes.

C$.$ will be less likely to vertically integrate to limit liability.

D$.$ will be more likely to vertically integrate to increase corporate governance.

E$.$ will be less likely to vertically integrate to avoid paying taxes.