Distributors Add Value to a Supply Chain Between a Supply

question 33

Multiple Choice

Distributors add value to a supply chain between a supply stage and a customer stage

• A)if there is a small number of customers requiring a large amount of product.
• B)if there is a large number of customers requiring a large amount of product.
• C)if there are many small players at the customer stage,each requiring a small amount of the product at a time.
• D)if there are a few large players at the customer stage,each requiring a large amount of the product at a time.

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Definitions:

Efficiency

The optimal allocation of resources to maximize the production of goods and services.

Total Surplus

The total net gain to society from creating and using goods and services, shown by adding together consumer and producer surplus.

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of a good or service.

Gains From Trade

Gains achieved by dividing tasks and trading; in this way people can get more of what they want through trade than they could if they tried to be self-sufficient.