Disadvantages of Multi-Sourcing Do NOT Include

question 17

Multiple Choice

Disadvantages of multi-sourcing do NOT include:

• A) Suppliers are likely to form a cartel and drive up prices
• B) Difficulties in encouraging commitment by all suppliers
• C) Developing supplier quality assurance standards is less easy
• D) More vulnerable to disruption if a failure to supply occurs

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Definitions:

Accompanying Graph

A visual representation used alongside data or concepts to illustrate trends, patterns, or relationships in a clear and effective manner.

Decreasing-Cost Industry

An industry in which costs per unit decline as the industry scales up production, often due to economies of scale.

Average Cost

The total cost of production divided by the quantity of the product produced, indicating the cost per unit of output.

Industry's Output

The total production of goods or services generated by all firms operating within a specific industry.