The Network Purchasing Model Has One Hierarchically Structured Firm Negotiating

question 3

True/False

The network purchasing model has one hierarchically structured firm negotiating purchase terms with several similarly structured supplier firms, playing each supplier against the others.

---

Definitions:

Wage Rate

The amount of compensation a worker receives per unit of time or per unit of output.

Total Product

The total output or quantity of goods and services produced by a firm or industry within a specific period.

Derived Demand

Demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.

Auto Industry

The auto industry encompasses all companies and activities involved in the manufacture, marketing, and selling of motor vehicles, including parts manufacturers and the after-market for vehicle maintenance and repair.