Which of the Following Is the Best Description of Outsourcing

question 100

Multiple Choice

Which of the following is the best description of outsourcing?

• A) Any activity that adds value to some input by transforming it into an output for an internal or external customer
• B) An approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old departmental boundaries
• C) The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources
• D) The strategy of using the Internet and word-of-mouth marketing to spread product information
• E) The strategy of owning the means by which an organization produces goods or services

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Definitions:

Monopsony Labor Market

is a market structure where a single buyer (employer) substantially controls the market as the major purchaser of labor, influencing wages and employment conditions.

Purely Competitive

A market structure characterized by a large number of small firms producing identical products, with no single firm able to influence the market price.

Marginal Revenue Product

Marginal Revenue Product measures the additional revenue generated from employing an extra unit of a resource.

Marginal Revenue Product

The additional revenue generated from using one more unit of a particular input, holding all other inputs constant.