Discrepancies of Quantity Occur Because

question 119

Multiple Choice

Discrepancies of quantity occur because:

• A) some consumers have more money than others.
• B) individual producers tend to specialize while individual consumers want a broad assortment of products.
• C) consumers demand more product variety than producers can make.
• D) to obtain economies of scale, individual producers often make larger quantities of products than individual consumers normally want to buy.
• E) there are many more consumers than producers.

Understand the purpose and benefits of digitized supply chain management (SCM) networks.

Recognize the continued relevance of traditional tools like spreadsheets and database software in supply chain information systems (SCIS).

Identify key trends driving the growth of information technology in supply chain management.

Appreciate the importance of information quality in effective business decision-making.

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Definitions:

Arbitrage

The simultaneous purchase and sale of the same assets in different markets to exploit price differences for a profit.

Risk-free Rate

The expected yield from an investment that carries no risk of losing money, often identified by the returns on government bonds.

Futures Market

A financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future.

Stock Index Futures

Futures contracts that obligate the buyer to purchase or the seller to sell a specific stock index at a predetermined future date and price.