Fred Started a T-Shirt Business Last Year

question 59

Multiple Choice

Fred started a t-shirt business last year.He designs the shirts in the United States and then sends the designs to companies in China to be produced.Fred is utilizing a(n) _____ strategy.

• A)offshoring
• B)co-sourcing
• C)insourcing
• D)3PL
• E)procurement

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource.

Average Product

Output per unit of a particular input.

Perfect Competitor

An idealized firm that has no market power and operates in a market with many buyers and sellers where all have perfect information.

Income Effect

It refers to the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.