Which of the Following Is a Reason for a Firm

question 34

Multiple Choice

Which of the following is a reason for a firm to Buy rather than make?

• A)To eliminate competition among upstream suppliers
• B)Upstream firms aggregate the demands of many buyers and provide economies of scale.
• C)To prevent downstream competitors from reducing their prices
• D)Tax advantages for purchasing upstream rather than making internally
• E)None of the above

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Definitions:

Weighted Mean

An average in which each quantity to be averaged is assigned a weight, reflecting its importance or frequency.

Geometric Mean

The nth root of the product of n numbers, used to calculate average rates of return or growth over time for variables that fluctuate multiplicatively.

Data Value

A specific piece of information, often numerical, that is collected, analyzed, or stored as part of a data set.

Outlier

A data point that significantly differs from the other data points in a dataset, often indicating a measurement error or a unique case.