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A Firm Is Considering Whether to Out Source Some Aspects

question 71

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A firm is considering whether to out source some aspects of the manufacturing of its products.Which one of the Six P's of Operations is the firm addressing?


Definitions:

Marginal Cost

The financial outlay required to produce an additional unit of a good or service.

Gasoline

A transparent, petroleum-derived liquid that is used primarily as a fuel in most spark-ignited internal combustion engines.

Car Wash

A facility for cleaning vehicles, typically involving an automated system with brushes and water jets or a manual cleaning by workers.

Marginal Decisions

Decisions made based on the additional benefit or cost of consuming or producing one more unit of a good or service.

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