A Business Is Changing from a Business to Business Model

question 58

Multiple Choice

A business is changing from a business to business model to a business to consumer model. Which of the following statements about this supply chain change is true?

• A) Returns from customers will decrease.
• B) Number of supplier orders will increase.
• C) Number of customer orders will increase.
• D) Average supplier order size will increase.

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Definitions:

Pure Competition

A market format where there are many sellers presenting the same products, and none of these sellers are able to affect the market price on their own.

Unique Product

A product that is different from others in the market due to distinctive features, design, or attributes that make it stand out.

No Close Substitutes

A market condition where a good or service has no similar alternatives, giving it a unique position and potentially more market power.

Market Model

A theoretical construct that describes how different types of markets operate and interact.