Exhibit 31-1 -Refer to Exhibit 31-1.If the Exhibit Represents a Negative Externality

question 131

Multiple Choice

Exhibit 31-1

-Refer to Exhibit 31-1.If the exhibit represents a negative externality situation,the social cost of expanding output from Q₁ to Q₂ is the area of

• A) ABC.
• B) Q₂BCQ₁.
• C) Q₂BAQ₁.
• D) Q₂EAQ₁.

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Definitions:

Supply Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Quality Chain

A sequence of activities or processes that aim to ensure and enhance the quality of products or services at every stage.

External Customers

Individuals or entities that purchase a company's products or services but are not part of the organization itself.

Internal Customers

Individuals or departments within an organization that receive services or products from other parts of the same organization.