With Cross-Sourcing, How Many Suppliers Provide Each Component on a Regular

question 25

Multiple Choice

With cross-sourcing, how many suppliers provide each component on a regular basis (i.e., excluding backup suppliers) ?

• A) 1
• B) 2
• C) 3
• D) equal to the total number of components
• E) equal to the number of countries to which the final product is sold

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Definitions:

Perfectly Price-Discriminated

A market scenario where a seller charges each buyer their maximum willingness to pay, capturing all available consumer surplus as profit.

Total Revenue

The total receipts from sales of a given quantity of goods or services.

Sold Units

The number of individual items or products sold by a company within a specified time period.

Price Discrimination

This refers to the practice of selling nearly the same items or services at varying prices in distinct markets by a singular provider.