If the Production of a Sofa Requires the Purchase of 3

question 77

Multiple Choice

If the production of a sofa requires the purchase of 3 types of inputs and the production of a harp requires the purchase of 30 types of inputs,______

• A)the harp-producing firm will buy the sofa-producing firm.
• B)the sofa-producing firm will buy the harp-producing firm.
• C)harp production will more likely be done through the hierarchy of firms.
• D)sofa production will more likely be done through the hierarchy of firms.
• E)both harp and sofa production will rely on market exchange because there is more than one input involved in each.

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Definitions:

Two-Way Link

A reciprocal relationship or connection, where both parties can send and receive information or influence each other.

Logistics

The detailed coordination of a complex operation involving people, facilities, or supplies, in the movement of goods from point of origin to point of consumption.

Buyer and Supplier

The relationship between entities that purchase goods or services and those that supply or provide them.

Reverse Logistics

The process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal.