While Firms Buy Many of Their Inputs Through the Open

question 14

Multiple Choice

While firms buy many of their inputs through the open market, there is often a desire to produce critical inputs. A common concern in producing an input yourself (internally) is that:

• A) the firm will find it too easy to manage quality.
• B) the firm will not minimize costs at a high enough level of output.
• C) outside competitors will learn about your inputs.
• D) your firm will get prompt supply of the input.

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Definitions:

Robber's Cave Study

An experiment on group conflict and cooperation conducted by Muzafer Sherif, demonstrating how intergroup hostility can be reduced through cooperative goals.

Self-affirmation

The act of recognizing and affirming one's abilities and values to maintain self-integrity and respond positively to threats to one's self-concept.

Competition

A situation in which individuals or groups strive against each other to achieve a goal that cannot be shared.

Cooperation

The process of groups or individuals working together towards a common goal, often resulting in mutual benefit and shared success.