Which of the Following Is False

question 60

Multiple Choice

Which of the following is false?

• A)In the factor-input strategy,an organization is seeking low-cost or high-quality sources of supply.
• B)Global procurement refers to buying components and inputs anywhere in the world.
• C)Planning is the first step in global procurement.
• D)A market access strategy emphasizes procurement from geographically close countries.

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Definitions:

Long-run Average Total Cost

A curve that shows the lowest average cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.

Specialization

A production strategy where individuals, regions, or nations focus on the production of a limited scope of goods or services to gain greater efficiency and productivity.

Economies of Scale

Economies of Scale describe the cost advantages that a business can achieve due to expansion, leading to a lower cost per unit of output.