What Is the Business Doing If It Needs a Particular

question 20

Multiple Choice

What is the business doing if it needs a particular good or service and decides to look among its own customers for a provider of that good or service?

• A)working to create purchase arbitration
• B)opening itself up to prosecution for illegal activities
• C)practising reciprocity
• D)trying to eliminate derived demand barriers

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Definitions:

Variable Factors

Elements in production that can change in the short term, such as labor and raw materials, in contrast to fixed factors like capital.

Total Cost

The complete sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Output

the total amount of goods or services produced by a company, industry, or economy in a given period.

Average Variable Cost (AVC)

The total variable costs divided by the quantity of output produced, representing the variable cost per unit of output.