Reasons for Buying Items Instead of Making Them Can Include

question 22

True/False

Reasons for buying items instead of making them can include cost advantage,insufficient capacity,lack of expertise,and quality.

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Definitions:

Marginal Revenue

The extra revenue gained by selling an additional unit of a product or service.

Economies of Scale

Cost advantages that entities attain due to the scale of operation, with costs per unit of output generally decreasing with increasing scale.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, measuring the performance exceeding opportunity costs.