In each of the following situations, why are firms likely to benefit from vertical integration?

a.A grain elevator is located at the terminus of a rail line.

A grain elevator owner would benefit from vertical integration for several reasons:

b.A manufacturer of a product with a national brand name reputation uses distributorsthatarrangefor advertising and promotional activities in local markets.

The manufacturer would benefit from vertical integration for several reasons:

c.A biotech firm develops a new product that will be produced, tested, and distributed by an established pharmaceutical company.

The biotech firm would benefit from vertical integration for several reasons: