When a Firm Purchases a Part of Its Supplies from Any

question 28

Multiple Choice

When a firm purchases a part of its supplies from any one of a large number of potential suppliers at the current market price without long-term commitments,it is:

• A)making a spot market purchase.
• B)practicing arbitrage.
• C)integrating upstream.
• D)integrating downstream.

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Definitions:

Legally Binding

Describes an agreement or contract that is enforceable by law, meaning parties can be compelled to comply with its terms.

Contract

A contract between multiple parties that holds legal enforceability.

Rent of $100

A specific lease payment amount agreed upon for the use of property, typically mentioned in rental agreements or leases.

Occupy

To take possession and control of a place, usually for political or protest purposes, without the permission of the owner.