In the Short Run,in Response to a Decrease in Demand,producers

question 12

Multiple Choice

In the short run,in response to a decrease in demand,producers will typically choose _______ prices,but rather to meet the decreased demand at _______ prices.

• A) not to cut;preset
• B) to cut;variable
• C) not to raise;preset
• D) to raise;variable
• E) to cut;preset

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Definitions:

Centralization

A process where decision-making authority is concentrated at a single point in the organization, often at the top management level.

Buying Specialization

A procurement approach where purchasing responsibilities are divided amongst team members based on specific categories of goods or services.

Purchasing Consortium

A group of companies or organizations that join together to pool their purchasing power, aiming to negotiate better terms and prices from suppliers.

Collaborative Purchasing

A strategy where multiple organizations come together to negotiate and buy products or services to achieve cost savings and other buying synergies.