List the Reasons for Making in the Make- Or- Buy

question 80

Essay

List the reasons for making in the make- or- buy decision.

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Definitions:

Mixers

Devices used for blending ingredients together, commonly found in cooking, baking, and cocktail making.

Diseconomies of Scale

A condition in which a firm’s average costs increase as production increases.

Returns to Scale

The change in output as a result of proportionately changing all inputs in the production process, indicating increasing, constant, or decreasing returns.

Marginal Cost

An uplift in the sum total of costs incurred by producing another unit of a product or service.