Which of Following Is a Firm's Risk of Outsourcing the Production

question 39

Multiple Choice

Which of following is a firm's risk of outsourcing the production of a part?

• A) fluctuation in the manufacturing costs
• B) leakage of intellectual property
• C) increased need of skilled workers
• D) scarcity of indirect labor

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Definitions:

Commodity Products

Goods that are interchangeable with others of the same type and are usually sold based on price rather than brand or differentiation.

Monopolistic Competition

Monopolistic competition is a market structure characterized by many sellers offering differentiated products or services, leading to a competitive environment where companies have some price-making power.

Tracking Device

A tracking device is a technology designed to monitor and report the location or movement of an object, vehicle, or individual, using GPS or other means.

Oligopoly

A market structure characterized by a small number of firms controlling a significant portion of the market share, leading to limited competition.