A Disadvantage of the "Few Suppliers" Strategy Is

question 51

Multiple Choice

A disadvantage of the "few suppliers" strategy is

• A) the risk of not being ready for technological change
• B) the lack of cost savings for customers and suppliers
• C) possible violations of the Sherman Antitrust Act
• D) the high cost of changing partners
• E) All of the above are disadvantages of the "few suppliers" strategy.

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Definitions:

Fixed Proportion

A production scenario where inputs must be used in specific, unchangeable ratios to produce output, often resulting in a limitation on the flexibility of the production process.

Isoquant Map

A graphical representation showing different combinations of inputs that produce the same level of output.

Curves

In various contexts, it refers to graphical representations that show a relationship between two or more variables or factors.

L-shaped Isoquant

A graphical representation in production theory showing combinations of input factors that yield the same output, where the shape indicates perfect substitutability between inputs up to a point, followed by no substitutability.