An Organization's Value Chain Can Incorporate Its

question 58

Multiple Choice

An organization's value chain can incorporate its:
I. Own customers
II. Own suppliers
III. Customers' customers
IV. Suppliers' suppliers

• A) I and II
• B) I and III
• C) II and IV
• D) I, II, III, and IV

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Definitions:

Fixed Factor

Inputs in production that cannot be easily increased or decreased in the short term, such as buildings and land.

Marginal Cost

The cost associated with producing an additional unit of output, significant in decision-making processes related to production levels.

Market Price

The current price at which an asset or service can be bought or sold, determined by supply and demand in the marketplace.

Economic Profit

The gap between the complete earnings and the overall expenditure, covering both overt and hidden costs.