Which of the Following Is Better Performed In-House Rather Than

question 52

Multiple Choice

Which of the following is better performed in-house rather than being outsourced?

• A)An activity with a high degree of industry commonality.
• B)An activity with a high degree of commoditization.
• C) An industry-specific and firm-specific (proprietary) activity.
• D) All of the above.

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Definitions:

Marginal Revenue

Marginal Revenue is the additional income generated from selling one more unit of a good or service.

Profit-maximizing Level

The point at which a business achieves the highest profit, where marginal cost equals marginal revenue.

Market Demand

The sum of all the quantities of a good or service demanded per period by all the households buying in the market for that good or service.

Total Revenue

The total income a firm receives from selling its goods or services, calculated as the price per unit times the number of units sold.