The Market

question 17

Multiple Choice

The market

• A)On its own may not always provide the optimal mix of goods and services.
• B)Always provides the optimal mix of goods and services.
• C)Always provides a better mix of goods and services without government intervention than it does with government intervention.
• D)May not produce the optimal mix of output, which is known as government failure.

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Definitions:

Logistics

the process of planning, implementing, and controlling the efficient and effective forward and reverse flow and storage of goods, services, and related information from point of origin to point of consumption.

Supply Chain Management

The active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage, encompassing everything from production to product delivery.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Pull Strategy

A supply chain strategy in which customer orders drive manufacturing and distribution operations.