How Will an Organization Use Its Transportation Driver If It

question 35

Multiple Choice

How will an organization use its transportation driver if it focuses on a highly efficient supply chain?

• A) Increase the price of its products by using slower, less expensive transportation methods
• B) Decrease the price of its products by using slower, less expensive transportation methods
• C) Increase the price of its products by using faster, more costly transportation methods
• D) Decrease the price of its products by using faster, more costly transportation methods

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Definitions:

Profit-maximizing Quantity

The level of output at which a business realizes the greatest profit, where marginal cost equals marginal revenue.

Economic Loss

Occurs when the total cost of producing a good or service exceeds the revenue generated from its sale, leading to negative profitability.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Quantity

The amount or number of a material or immaterial good considered as a discrete unit or in total.