The Value Chain of an Organisation

question 21

Multiple Choice

The value chain of an organisation:

• A)includes only those activities that are profitable
• B)is determined by what competitors choose not to do
• C)is the set of activities that the organisation undertakes or organises to deliver the product to the customer
• D)is determined by collaborating firms such that value-adding activities are arranged in a chain of value creation between collaborators

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Definitions:

Marginal Product

The additional output resulting from the use of one more unit of a productive input, holding other inputs constant.

Production Function

An equation that describes the maximum output of a good achieved from a given number of inputs.

Input

The inputs such as labor, materials, or resources utilized in creating products and services.

Convexity

In economics and finance, convexity refers to the shape of the curve that demonstrates how the duration of a bond changes as the interest rate changes.