The Use of E-Commerce to Allow Firms to Reduce the Costs

question 55

Multiple Choice

The use of e-commerce to allow firms to reduce the costs of processing transactions while improving their supply-chain management skills and tightening the control of their inventories is beginning to replace:

• A) Outsourcing
• B) Unrelated diversification
• C) De-integration
• D) Vertical integration

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Definitions:

Utility Function

A mathematical representation that ranks an individual's preferences for various goods and services, aiming to measure their level of satisfaction.

Units of X

A quantitative measure used to express the amount of a variable or entity X.

Price of X

Refers to the current market price of a specific good, service, or commodity.

Utility Function

A mathematical representation that ranks an individual's preferences over a set of goods or services, showing their relative satisfactions or levels of utility.