Vertical Integrating the Manufacture of Component Parts Increases an Organization's

question 24

Multiple Choice

Vertical integrating the manufacture of component parts increases an organization's scope, and the resulting increase in organizational complexity can raise a firm's cost structure.Which of the following is not a reason for this?

• A)Vertically integrated firms have to determine appropriate prices for goods transferred to subunits within the firm.
• B)The greater the number of subunits in an organization, the greater are the problems of coordinating and controlling those units.
• C)The firm that vertically integrates into component part manufacture may find that because its internal suppliers have a captive customer in the firm, they lack an incentive to reduce costs.
• D)Vertically integrated firms have to find a way to distribute supplies to each subunit within a reasonable time frame.
• E)the greater the number of subunits the greater the amount of information that must be managed

Understand the historical context and significance of the slave trade in the Americas.

Identify the factors leading to the importation of African slaves into various regions of the Americas.

Analyze the conditions and demographics of African slaves in the Caribbean and Latin America.

Define and describe the "middle passage" and its impact on enslaved Africans.

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Definitions:

Profit-maximizing Level

The output level at which a firm achieves the highest possible profit, determined where marginal cost equals marginal revenue.

Total Output

The complete quantity of goods or services produced in a specific time period by an economy or firm.

Labor Prices

The wages or compensation paid to employees for their labor or work performed.

Profit-maximizing Firm

A company that seeks to achieve the highest possible profit through its operations, focusing on revenue enhancement and cost reduction.