Define Value Chain and Explain the Difference Between a Firm

question 2

Essay

Define value chain and explain the difference between a firm value chain, an industry value chain, and a value web.

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Definitions:

Break-even Sales

The amount of sales revenue needed to cover all fixed and variable costs, leading to a situation where there is no profit or loss.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Break-even Point

The point at which total costs and total revenues are equal, meaning there is no profit or loss.

Unit Selling Price

The amount of money charged for one unit of a product or service.