Logistics Includes Activities That Govern the Flow of Tangible, Physical

question 106

True/False

Logistics includes activities that govern the flow of tangible, physical materials through the supply chain such as shipping, transport, distribution, and warehousing.

---

Definitions:

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good changes as the production level varies.

Total Variable Costs

The total of all costs that vary with the level of output, including costs for raw materials, labor, and energy, in the production process.

Average Fixed Costs

Fixed costs divided by the quantity of output produced, indicating the fixed cost per unit of output.

Constant Returns to Scale

The situation in which a proportional increase in all inputs leads to an equal proportional increase in output.