$4.$ A firm specializing in high$-$end bicycle manufacturing is considering vertically integrating by acquiring a supplier of carbon fiber components. Under which market conditions would this

vertical integration strategy be MOST advantageous for the bicycle manufacturer, considering both efficiency and risk?

A$)$ When the bicycle manufacturer has limited experience in carbon fiber production and faces significant technological uncertainty.

B$)$ When the carbon fiber component market is concentrated among a few suppliers, with potential for supply disruptions and price volatility.

C$)$ When the demand for high$-$end bicycles is stable and predictable, with minimal fluctuations in customer preferences.

D$)$ When the carbon fiber component market is highly competitive, with many suppliers offering standardized products at stable prices.