Which of the Following Is Not a Benefit of Tapered

Multiple Choice

Which of the following is not a benefit of tapered integration?

A) It expands the firm's input and/or output channels without requiring substantial capital outlays
B) Allows the firm to use information about the cost and profitability of its internal channels to help negotiate contracts with independent channels
C) Lets the firm motivate its internal channels by threatening to expand outsourcing and,at the same time,motivate its external channels by threatening to produce more in-house.
D) Allows the firm to produce most efficiently in all circumstances
E) Helps the firm protect itself against holdup by independent input suppliers