The Manager of Steel Works Learns of a New Technological

Multiple Choice

The manager of Steel Works learns of a new technological interdependency between the final stage of production and the distribution of the final product. If Steel Works currently contracts with another firm to distribute the product, which of the following is true?

A) The manager has less of an incentive to integrate forward.
B) The manager has less of an incentive to integrate backward.
C) The manager has more of an incentive to integrate backward.
D) The manager has more of an incentive to integrate forward.