If Iron Horse Helmets (IHH) were to contract with a Chinese manufacturing firm to provide IHH with superior quality helmets for sale in the United States but discovered that the shipments were actually of inferior quality when they were received, this experience would support which type of justification for or against vertical integrationa. For vertical integration, to reduce monitoring costs. b. Against vertical integration, because challenges would be worse inside the firm. c. Against vertical integration, because IHH lacked the relevant resources. d. For vertical integration, to avoid the hold-up problem.
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