Firms Can Use Value-Chain Activities to Create Value by Either

question 177

Multiple Choice

Firms can use value-chain activities to create value by either finding better ways to perform the same activities or by ________.

• A) integrating new activities into the chain
• B) finding different ways to perform the same activities
• C) aligning with other firms to merge activities
• D) changing activities to match what competitors are doing

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Definitions:

Marginal Social Cost

Marginal social cost is the total cost society bears for the production of an additional unit of a good or service, considering both private costs and any external costs.

Species Extinction

The permanent disappearance of a species from Earth.

Property Rights

Legal rights to possess, use, and dispose of assets, including land, buildings, and intellectual property.

Marginal Cost

The financial increase due to the production of an extra product or service unit.