Outsourcing Is The

question 131

Multiple Choice

Outsourcing is the:

• A) spinning off of a value-creating activity to create a new firm.
• B) selling of a value-creating activity to other firms.
• C) purchase of a value-creating activity from an external supplier.
• D) use of computers to obtain value-creating data from the Internet.

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Definitions:

Inverse Demand Function

A mathematical function that expresses price as a function of quantity demanded, illustrating how the price necessary to sell a given quantity changes.

Price

The amount of money required to purchase a good or service, often determined by supply and demand dynamics in the market.

Income

Funds accumulated over time from work or investing efforts, usually received systematically.

Utility Function

A representation in economics of how a consumer ranks different bundles of goods according to their level of satisfaction or happiness.