Making all or part of a product in-house is most beneficial when a firm wants to? A. build longtime customer over time. B. Increase labor costs at the firm’s location C. increase strategic flexibility and also to protect proprietary technology. D. start business in more geographical locations alone without the suppliers knowledge.

• increase strategic flexibility and also to protect proprietary technology.

Explanation:

A firm can choose whether to produce the product in-house or buy from other sellers/outsourcing. This decision depends on several factors depending on what objective of the firm is. A firm may decide to produce goods in-house when there is existing idle production capacity, better quality control for the products, and when the firm needs to protect its proprietary technology.