Supply Chain and Logistics Managers Play a Large Part in the Manufacture

question 81

Multiple Choice

Supply chain and logistics managers play a large part in the manufacture of automobiles. It is estimated that logistics costs account for ________ percent of the retail price you pay for a new car.

• A) 1 to 2
• B) 4 to 5
• C) 8 to 10
• D) 12 to 15
• E) 25 to 30

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Definitions:

Utility Maximizing

The process by which individuals select the mix of goods and services that maximizes their satisfaction or utility, given their budget constraint.

Elastic Demand

A situation where the demand for a product is sensitive to price changes, showing a significant change in quantity demanded when prices fluctuate.

Market Demand Curve

Represents the total quantity of a good or service that all consumers in a market are willing and able to purchase at different prices.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price point, at a specific time.