The Main Reason That the Producers of Wood Pulp Have

Multiple Choice

The main reason that the producers of wood pulp have often forward integrated into the production of paper is:

A) To increase value added by moving closer to the final customer
B) To exploit technical economies of co-locating pulp and paper making plants while avoiding transaction costs caused by transaction-specific investments
C) To reduce inventories and improve quality
D) To insulate the firm from fluctuations in the price of wood pulp.