While Firms Buy Many of Their Inputs Through the Open

Multiple Choice

While firms buy many of their inputs through the open market, there is often a desire to produce critical inputs. A common concern in producing an input yourself (internally) is that:

A) the firm will find it too easy to manage quality.
B) the firm will not minimize costs at a high enough level of output.
C) outside competitors will learn about your inputs.
D) your firm will get prompt supply of the input.