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Company C currently sources keyboard components from various suppliers. Company C calculated that the external transaction costs of sourcing components would amount to $ 1

Company C currently sources keyboard components from various suppliers. Company C calculated that the external transaction costs of sourcing components would amount to $10 million, and the internal transaction cost of manufacturing the components would amount to $8 million. In this scenario, Company C should
a.
exit the keyboard industry.
b.
diversify its activities.
c.
vertically integrate.
d.
continue to outsource production.

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