In Order to Effectively Manage the Company's Value Chain

question 59

Multiple Choice

In order to effectively manage the company's value chain,

• A)the materials management function should hold greater inventories in order to avoid shortages.
• B)the marketing function should focus on customer needs rather than the type of products.
• C)the production function should locate customers and persuade them to buy the company's products.
• D)the sales function should control the movement of physical materials from procurement through customer delivery.
• E)the customer service function should focus on offering high-quality products at higher prices.

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Definitions:

Monopoly

A market structure characterized by a single seller controlling a large portion of the market and the ability to influence prices and output.

Monopolistically Competitive

Refers to a market structure where many companies sell similar but not identical products, allowing them to have some control over their prices.

Economic Profits

Profits that exceed the opportunity costs of a firm, calculated as total revenues minus both explicit and implicit costs.

Long Run

A period during which all factors of production and costs are variable, and firms can enter or exit the industry.