When a Company Outsources Its Noncore Activities to Specialists, It

question 57

True/False

When a company outsources its noncore activities to specialists, it loses its capabilities to differentiate its final products.

---

Definitions:

Long Run

An economic term referring to a period during which all inputs or factors of production can be varied, and there are no fixed constraints.

Average Fixed Costs

The fixed costs (those not changing with output level) of production divided by the quantity of output produced.

Marginal Cost

The extra expense incurred from manufacturing an additional unit of a product or service.

Price of Labor

The compensation paid to employees for their work or services, typically measured in terms of wages or salary.