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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 $ million, and the internal transaction cost of manufacturing the components would amount to $ 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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