Hiring an External Vendor Rather Than Doing a Particular Task

question 67

Multiple Choice

Hiring an external vendor rather than doing a particular task internally is called __________.

• A) insourcing
• B) outsourcing
• C) resourcing
• D) telesourcing

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Definitions:

Perfectly Competitive Market

A market structure characterized by a large number of small firms, homogeneity of products, free entry and exit, and perfect information, leading to firms being price takers.

Economic Profits

Profits exceeding the opportunity costs of all resources employed, used as a measure of efficiency and competitiveness in economic theory.

Limited Resources

Refers to the finite amount of resources available for production of goods and services, including labor, capital, and natural resources.

Market Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of that good supplied by all producers in the market.