a firm should consider vertical integration when a. the competitive situation is highly volatile. b. the suppliers of the firm willingly cooperate with the firm. c. the suppliers of raw materials to the firm are unable to maintain quality standards. d. customer needs are evolving.

Respuesta :

A firm should consider vertical integration when the suppliers of the firm willingly cooperate with the firm (option B)

What is vertical integration?

Vertical integration is when a company acquires another company in the same production line. e.g. a baker purchases a pastry distributing company

Vertical integration is usually undertaken to reduce the cost of production and it gives the acquiring firm a greater control of the production process.

A disadvantage of vertical integration is it can be very expensive and it reduces flexibility of firms.

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