Which of the Following Companies Is Most Likely to Experience

question 56

Multiple Choice

Which of the following companies is most likely to experience the benefits of outsourcing?

• A)Pulsar Corp., a shoe manufacturer, which has invested huge an amount of capital in order to afford its suppliers
• B)Black Inc., a consumer electronics company, which has been importing its supplies from other companies and focuses only on the critical aspects of its work
• C)Carbon LLC, an automobile manufacturer, which has the capability to produce more of its raw materials in house
• D)Beta Corp., a computer manufacturer, which has been trying hard to adapt new technologies in order to gain competitive edge in the industry

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Definitions:

Purely Competitive Industry

Refers to a market structure where many firms sell identical products, entry and exit from the market are easy, and no single buyer or seller can influence the market price.

Demand Curve

This depicts how consumer demand for a product changes as the price of that product changes, illustrating the inverse relationship between price and quantity demanded.

Perfectly Elastic

Describes a situation in which quantity demanded or supplied changes infinitely in response to any change in price, visualized as a horizontal line on a demand or supply graph.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as the quantity of output produced changes.