When a Business Affects the Life of a Member of the Surrounding

question 8

Multiple Choice

When a business affects the life of a member of the surrounding community without meaning to, the company has wielded

• A) coercive power.
• B) deliberate power.
• C) hidden power.
• D) unintentional power.

Understand the concept of fair price and its determination in supply chain management.

Identify factors that may lead to the rejection of the lowest bid in procurement processes.

Differentiate between direct and indirect costs, including their categorizations.

Comprehend the cost approach to pricing and its implications for ethical pricing strategies.

---

Definitions:

High-price Ranges

The upper levels of price points at which products or services are sold, often implying premium quality or exclusivity.

Perfectly Inelastic

Describes a situation in demand or supply where the quantity demanded or supplied does not change in response to a price change.

Demand Schedule

A table that shows the quantity of a good that consumers are willing to buy at different prices.

Parallel

Lines or paths that remain the same distance apart at every point, never meeting or intersecting.