What Term Describes When a Firm Has Minimized the Extent

question 2

Multiple Choice

What term describes when a firm has minimized the extent to which the exchange of goods and services in the vertical chain has been organized to minimize coordination,agency and transaction costs?

• A)Agency efficiency
• B)Technical efficiency
• C)Lean compliant
• D)Economizing
• E)Six sigma compliant

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Definitions:

Utility Function

A mathematical representation that assigns a value to every possible choice to indicate the level of satisfaction or utility that choice provides to a consumer.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specified period of time.

Income

Remuneration obtained regularly through employment or investment activities.

Demand

Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.