Sun Microelectronics Custom Orders Processors, Chips, and Circuit Boards for Sun's

question 191

Multiple Choice

Sun Microelectronics custom orders processors, chips, and circuit boards for Sun's desktop, server, and storage products.Sun doesn't actually make any of its microelectronic gear itself.Sun contracts the work to outside manufacturers, who in turn rely on components from their own subcontracted suppliers.The 150 suppliers involved in making and delivering Sun products have adopted mutually beneficial objectives and strategies that give Sun's customers value for their money.Sun's method of doing business is an example of a(n)

• A)symbiotic partnership.
• B)legal but unethical partnership.
• C)manufacturer-dominated relationship.
• D)supply partnership.
• E)supplier-dominated relationship.

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Definitions:

Total Revenue

The total amount of money generated by a business from the sale of goods or services before any expenses are deducted.

Short-Run Supply

The quantity of goods a firm is willing and able to supply to the market at different price levels in a short-term period, typically assuming some inputs are fixed.

Average Fixed Cost

The fixed costs of production (those that do not change with the level of output) divided by the quantity of output produced. It decreases as production increases.

Total Product

The total quantity of output produced by a firm over a given period as a result of inputs.