Which of the Following Is a Form of Outsourcing

question 21

Multiple Choice

Which of the following is a form of outsourcing?

• A) ANP Infotech buying off-the-shelf software from a vendor
• B) ANP Infotech customizing its information systems
• C) ANP Infotech acquiring licensed manufacturing software from a vendor
• D) ANP Infotech updating its data standards to protect its information assets
• E) ANP Infotech retraining internal employees

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Definitions:

Competitive Industry

An industry characterized by many buyers and sellers, such that no single market participant has significant influence over prices.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms are making neither excess profit nor losses, typically reached over time.

Decreasing-Cost Industry

An industry in which expansion through the entry of firms lowers the prices that firms in the industry must pay for resources and therefore decreases their production costs.

Long-Run Supply Curve

A graphical representation showing the relationship between market prices and the amount of output that firms are willing to supply in the long run.