A Large Greenhouse Grower That Wants to Source a Suitable

question 34

Multiple Choice

A large greenhouse grower that wants to source a suitable organic liquid fertilizer contacts Organics.The grower is willing to pay a premium price for Organics's product.Accepting the order would mean Organics will not be able to completely fill existing orders to its current customers.Organics desires the new business but wants to maintain its existing customer base.Which of the following strategies should Organics use to solve this problem?

• A) Abandon all but the most important of the existing orders and fill the new order.
• B) Present an ultimatum on existing orders offering delivery on a later date or nothing at all.
• C) Comply with existing obligations,fill the orders,and offer the new business what is left.
• D) Offer a price break on existing orders in return for varying quantity and delivery date.

Understand the characteristics and outcomes of monopolistic markets versus perfect competition.

Analyze the economic impacts of monopolies on prices and output levels.

Identify barriers to entry in monopolistic markets.

Understand the role of government and regulations in monopolies.

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Definitions:

Volume Based

A pricing or discount strategy where the cost depends on the quantity of goods purchased or produced.

Quantity Discounts

A pricing strategy where the price per unit of an item decreases as the quantity purchased increases, used to encourage larger orders.

Multi-Echelon

Multi-Echelon describes a supply chain model that involves multiple levels of inventory storage and distribution points, from manufacturers to end-users, to optimize inventory levels and delivery times.

Replenishment Orders

Orders placed to restock inventory to a desired level, ensuring the availability of products for continued sales or production.