Question: 2. Vertical integration can be a solution to the market failure problem. Which factor of those listed below create conditions under which vertical integration can

2. Vertical integration can be a solution to the market failure problem. Which factor of those listed below create conditions under which vertical integration can be a good solution? a. For the transaction to work, one of the parties to the transaction would have to make an early commitment and investment that is tailored specically to the transaction and cannot be easily reversed or repurposed b. Both parties to the transaction have full and equal access to all the relevant information about the transaction and each other, but fail to analyze it because of the fear of opportunistic behavior of the other party c. The parties to the transaction operate in the industries with markedly different levels of profitability d. Both parties to the transaction calculate the direct and indirect costs of organizing transaction through the market mechanisms to be lower than the costs associated with the vertical integration
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