A Reason That Outsourcing Has Become an Increasingly Common Option

question 95

Multiple Choice

A reason that outsourcing has become an increasingly common option for companies is

• A) it helps companies to focus scarce resources away from their core competencies.
• B) it avoids problems of different languages or cultures.
• C) it enhances flexibility.
• D) it increases capital investments.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in market stability.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Tax

A compulsory financial charge or other levy imposed by a government to fund public expenditures.

Demand Function

A mathematical representation showing the relationship between the quantity demanded of a good and its price, along with other factors affecting demand.