First-Tier Suppliers Are Those Who ______

question 13

Multiple Choice

First-tier suppliers are those who ______.

• A)depend on the primary firm for certain supplies or raw materials
• B)depend on other suppliers for certain supplies or raw materials
• C)charge the highest prices
• D)charge the lowest prices

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Definitions:

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in the market, often illegal or regulated by law.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Cartel

An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.

Marginal Cost

The increase in total cost that arises from producing an extra unit of output.