Finding a Vendor and Negotiating a Price for Raw Materials

question 22

Multiple Choice

Finding a vendor and negotiating a price for raw materials for production would be an example of a(n) ________ in Porter's value chain model.

• A) linkage
• B) integrated activity
• C) complex
• D) support activity
• E) primary activity

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Definitions:

Isoquants

Isoquants are curves that represent combinations of different inputs that yield the same level of output, used in production theory to analyze input choices.

Marginal Rate

The rate of change in a variable (often cost or benefit) as a result of a unit increase in another variable, commonly used in the context of marginal tax rates or marginal cost.

Technical Substitution

The process of replacing one set of inputs or technologies with another to produce the same amount of output, often for efficiency improvements.

Isoquant

A curve representing all combinations of inputs that produce the same level of output in the production process, analogous to an indifference curve in consumption.