Dave Is a Close-Up Magician Who Is Famous for His

question 10

Multiple Choice

Dave is a close-up magician who is famous for his card tricks. He creates and sells DVDs of his magic tricks. Lately he has been having some trouble getting the DVDs produced in a timely manner. Of the five primary activities in the value chain, this problem is most likely to occur in ________.

• A) inbound logistics
• B) operations
• C) outbound logistics
• D) marketing and sales
• E) service

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Definitions:

Price-taker

A seller or buyer that has no control to dictate prices in the market, typically because of the highly competitive and uniform nature of the product.

Competitive Price-searcher Markets

Markets where firms have some control over prices due to product differentiation, but must search for the best price to attract customers.

Price Searchers

Firms that have the ability to influence the price of the goods or services they sell by varying their output or product characteristics.

Gross Revenue

Total income received by a company from its business activities, before any expenses are deducted.