Vertical integration can be a solution to the market failure problem.Which factor of those listed below creates conditions under which vertical integration can be a good solution?

a.For the transaction to take place, one of the parties to the transaction would have to make an early commitment and investment that is tailored specifically 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,thus making the transaction organized through market mechanisms more effective

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

Multidivisionalcompanies may have certain weaknesses compared to other organizational forms. All factors listed below can be such disadvantages EXCEPT:

a.Duplication of certain functions,like research and development

b.Lower economies of scope

c.Loss of efficiency in monitoring performance of individual divisions

d.Cutbacks on long-term investments in order to attain higher short-term performance metrics,like return on assets