One of the Benefits of EDI Is That It Can

question 103

Multiple Choice

One of the benefits of EDI is that it can reduce lead time,which is

• A) the time between the decision to place an order and the receipt of the merchandise.
• B) the time from when an RFP is announced to the time a consumer purchases the finished product.
• C) the time from when funds are committed for purchase of raw materials to the time when the payment for the finished goods is actually received.
• D) the time between when finished goods leave the manufacturer until the time they arrive, floor-ready, at the retailer.
• E) the time between when an item is sold to a customer and when a replacement is made available for purchase by another customer.

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Definitions:

Monopoly Power

The capacity of a firm to control market prices and exclude competition, often by being the sole provider of a product or service.

Barriers to Entry

Barriers that make it difficult for new entrants to join a market or business sector.

Average Total Cost Curve

Depicts the per-unit total cost of production (fixed cost plus variable cost) divided by the quantity of output produced.

Natural Monopoly

A market condition in which a single firm can supply a good or service to an entire market at a lower cost than could two or more firms.