Why Is Market Demand Uncertainty a Factor to Consider When

Multiple Choice

Why is market demand uncertainty a factor to consider when deciding whether to opt for vertical integration?

A) The greater the unpredictability of demand, the greater the need to make suppliers suffer the consequences rather than the firm
B) The greater the unpredictability of demand, the greater the consequences of compounded risk through vertical integration
C) The more turbulent the demand, the greater the control advantage of vertical integration
D) The more uncertain the market demand, the greater the bargaining power of the firm in the external market