Which of the Following Is a Reason That Single Sourcing

question 29

Multiple Choice

Which of the following is a reason that single sourcing is considered risky/bad?

• A)The buyer's required ordering quantities are very low
• B)Larger orders make quantity discounts more likely
• C)The limited (finite)capacity of one supplier
• D)Decreases the item to item quality variability of items purchased

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Definitions:

Duopoly Market

A market structure dominated by only two producers or sellers, leading to a form of competition that significantly impacts pricing and output decisions.

Merging Firms

The process where two or more companies combine into a single company, often to expand market share, reduce costs, or increase competitiveness.

Identical Product

A product that is exactly the same in every feature, quality, and production process with another product, making them interchangeable.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged, indicating an optimal state of balance.