If an Organization Wanted to Set Up a Facility in an Area

question 19

True/False

If an organization wanted to set up a facility in an area near a number of advanced suppliers,competitors,and research facilities in order to have access to current information on materials,components,and technologies the organization would likely set up a source factory.

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Definitions:

Monopsonist

A market condition where there is only one buyer for many sellers, giving the buyer significant power over prices and terms.

Nonunion Labor Force

Employees who are not members of a labor union and do not have negotiated contracts concerning their wages, benefits, and working conditions.

Monopsonist

A market condition in which a single buyer substantially controls the market as the major purchaser of goods and services.

Profit-Maximizing Quantities

The level of output at which a firm maximizes its profit, determined by the point where marginal cost equals marginal revenue.