Single Sourcing Consolidates Purchase Volume with a Single Supplier in Hopes

question 27

Multiple Choice

Single sourcing consolidates purchase volume with a single supplier in hopes of increasing cooperation and communication in the supply relationship as well as ___________.

• A)greater supply risk mitigation
• B)increased amounts of competition
• C)improved market intelligence
• D)lower costs per unit

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Definitions:

MRP = MRC

This equation stands for Marginal Revenue Product equals Marginal Resource Cost, a condition for profit maximization in firms, indicating the most efficient level of output where the cost of the last unit of input equals the revenue it generates.

Wage Rate

The amount of compensation paid to labor per unit of time, which can vary based on factors such as industry, location, and level of skill.

Purely Competitive Market

A market structure characterized by a large number of small firms, homogenous products, and free entry and exit, leading to price taking behavior.

Imperfectly Competitive Market

A market structure where individual sellers have some control over the price of their goods due to lack of perfect competition.