Question: Lime, which operates a dockless electric scooter sharing service, makes the business decision to buy its scooters as opposed to manufacturing them. Manufacturing their own

Lime, which operates a dockless electric scooter sharing service, makes the business decision to buy its scooters as opposed to manufacturing them. Manufacturing their own scooters would result in large, fixed costs. Which of the following disadvantages of vertical integration does this represent?

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Demand unpredictability

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Mismatches in optimal scale

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Increasing cost structure

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Vertical disintegration

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Technological change

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