Question: Widgets Inc. has decided to vertically integrate by supplying their own parts. Widgets will not supply those parts to any other company? The new employees

Widgets Inc. has decided to vertically integrate by supplying their own parts. Widgets will not supply those parts to any other company? The new employees in this department have expertise and knowledge that the parent company lacks. What are the issues and problems.

A. High powered incentives and moral hazard

B. Increased administrative and search costs

C. Lack of high powered incentives and information asymmetry

D. Flexibility and opportunism

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