Contract Manufacturing Is a Form of Outsourcing

question 278

True/False

Contract manufacturing is a form of outsourcing.

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Definitions:

Long-Run Cost Function

A mathematical relationship expressing the lowest cost at which a firm can produce any given level of output in the long run, when all input factors are variable.

Output

The total amount of goods or services produced by a company, industry, or economic system.

Price

The amount of money required to purchase a good or service, set by the interplay of supply and demand forces in the market.

Total Cost

The full expense incurred in the production or acquisition of goods or services, including both fixed and variable costs.