Question $7$

$1$ pts

Vertical integration can be disadvantageous $($e$.$g$.,$ consider a highly integrated auto company, such as General Motors, making cars, as well as car components$)$ when

the component $($auto parts$)$ suppliers act opportunistically $($i$.$e$.,$ they are likely to cheat$)$

the auto demand is highly unpredictable

the auto industry technology does not change much over time

the auto demand is highly predictable

the GM cars need very unique or specialized components $($that are not made by many suppliers$)$