Which of the Following Is a Possible Disadvantage of Outsourcing

question 194

Multiple Choice

Which of the following is a possible disadvantage of outsourcing?

• A)It increases the expenses incurred by the company to remain competitive in the market.
• B)It compromises on the quality and speed of production.
• C)It slows down the company's efforts in bringing new products to market.
• D)It is not suitable for jobs such as human resources and accounting.

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Definitions:

Marginal Cost

Additional financial obligation incurred by producing another unit of a product or service.

Product-Variety Externality

Occurs when the introduction of new products benefits consumers by expanding their choices, often leading to positive market effects.

Introduction

The initial section or the beginning part of a document, presentation, or text, aiming to give an overview or background of the subject matter.

Long-Run Equilibrium

A state where supply equals demand and all markets are in balance, typically achieved over a period where all inputs can be adjusted.