What Is the Number One Reason for Outsourcing

question 23

Multiple Choice

What is the number one reason for outsourcing?

• A)Less regulations
• B)Lower costs
• C)Increased demand
• D)Freedom of Information

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Definitions:

Consumer Surplus

Consumer surplus represents the discrepancy between the total price consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.

Marginal Utility

Marginal utility represents the additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Total Utility

The sum satisfaction or benefit that a consumer receives from consuming a particular quantity of goods or services.