Explain Value Chains and the Differences Between Primary and Support

question 68

Essay

Explain value chains and the differences between primary and support value activities.

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Definitions:

Volume Discount

A price reduction applied to a purchase based on the quantity of items bought, encouraging larger orders.

Breakeven Price

The market price at which the total costs of production equal the revenue derived from selling a product, resulting in neither profit nor loss.

Sale Price

The final amount at which a product or service is sold to consumers.

Marked Up

Refers to an increase in the selling price of goods or services, typically to create a profit margin above the cost.