Outsourcing the Performance of Value Chain Activities Presently Performed In-House

question 80

Multiple Choice

Outsourcing the performance of value chain activities presently performed in-house to outside vendors and suppliers makes strategic sense EXCEPT when

• A) an activity can be performed better or more cheaply by outside specialists.
• B) it allows a company to focus its entire energies on its core business.
• C) it restricts a company's ability to assemble diverse kinds of expertise speedily and efficiently.
• D) it reduces the company's risk exposure to changing technology and/or changing buyer preferences.
• E) it allows a company to leverage its key resources.

Understand the concept of producer surplus and its calculation.

Identify the factors that lead to consumer and producer surplus in a market.

Comprehend how market price influences consumer and producer surpluses.

Grasp the calculation of total revenues in a market context.