Miriam Is a Senior Manager for an International Chain of Fitness

question 12

Multiple Choice

Miriam is a senior manager for an international chain of fitness centers. Two suppliers provide exercise machines for her company. Which of the following is the wisest advice on how Miriam should manage her suppliers?

• A)Keep the relationships as they are and focus on other matters, since suppliers are not essential to this type of organization.
• B)Seek out potential new suppliers who can meet or exceed the quality standards of existing suppliers.
• C)Eliminate one of the suppliers based on the quality of machinery and speed of shipping.
• D)Eliminate one of the suppliers based on the lowest total price for each machine.

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Definitions:

Ticket Sales

The process of selling admission to events such as concerts, movies, or sports games to consumers.

Revenue Maximization

The process or strategy aimed at increasing the total income generated from sales before deducting any expenses.

Bertrand Competition

A model in economic theory in which competing firms choose their prices simultaneously and independently to maximize profits under the assumption that products are homogeneous.

Duopoly

A market structure characterized by two dominant firms controlling the majority of the market share.