One of the Key Features of an EDI (Electronic Data

question 2

Multiple Choice

One of the key features of an EDI (Electronic Data Interchange) system is:

• A)it allows easy access to all company data to vendors.
• B)its transaction formats are universal.
• C)it allows third-party transmission connections to company data.
• D)it saves both time and money by using different languages.
• E)vendors receive orders by voice mail.

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Definitions:

Industry Sales

The total revenue generated by all companies within a specific sector or industry.

Oligopoly

A market structure dominated by a small number of firms, leading to a high level of market control and potential for collaboration on prices and policies.

Herfindahl Index

A measure used to calculate the concentration of market power within an industry, determined by summing the squares of the market share percentages held by each firm within the market.

Four-Firm Concentration Ratio

A measure of market concentration, calculated as the percentage of total market sales accounted for by the four largest firms in an industry.