In a Supply Chain for Commodity Products,in Order to Maximize

question 50

Multiple Choice

In a supply chain for commodity products,in order to maximize supply chain surplus,the objective of supply chain members should be to

• A)supplement the product with a service.
• B)maximize revenue.
• C)minimize costs.
• D)de-commoditize the product.

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Definitions:

ATC Curves

Graphs that illustrate the average total cost of production at different levels of output.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the profitability of a firm beyond normal profit levels.

Marginal Revenues

Represents the additional income generated from the sale of one more unit of a good or service.

Total Revenues

The gross revenue obtained from merchandise or service transactions before removing any operational expenses.