The Main Reason That Automobile Manufacturers Have Increased the Amount

question 33

True/False

The main reason that automobile manufacturers have increased the amount of outsourced inputs is because of the importance of boom and bust cycles in the industry.

---

Definitions:

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal circumstances.

Collateral

An asset that a borrower offers to a lender as a security for a loan, which can be seized if the loan is not repaid.

Credit Cost Curve

Graphical representation of the sum of the carrying costs and the opportunity costs of a credit policy.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and opportunity costs.