Profitability of a Supply Chain Increases If All the Organizations

question 31

True/False

Profitability of a supply chain increases if all the organizations in the supply chain operate at their maximum profitability.

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Definitions:

Output Effect

When the price of any resource rises, the cost of production rises, which, in turn, lowers the supply of the final product. When supply falls, price rises, consequently reducing output.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, holding all other factors constant.

Additional Revenue

Income gained from any additional unit of output or sale beyond the current level of production or service.

Rent

A payment made by tenants to landlords in exchange for the use of real estate, equipment, or other properties.