What Is the Term for a Firm's Strategy to Gain

question 155

Multiple Choice

What is the term for a firm's strategy to gain more control over the supply chain by performing the activities itself or by acquiring the organizations that perform the activities?

• A) vertical integration
• B) horizontal integration
• C) insourcing
• D) outsourcing

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Definitions:

Utility Function

A mathematical representation of a consumer's preference system, ranking different bundles of goods and services by their levels of satisfaction.

Indifference Curve

A graph that represents different bundles of goods among which a consumer is indifferent, showing levels of consumption where the consumer has no preference for one combination over another.

Apples And Bananas

Commonly used examples in economics to represent two different goods in various economic models and theories.

Utility Function

A mathematical representation of how a set of goods and services are ranked according to their utility, or satisfaction, to the consumer.