There Are Three Primary Methods That Organizations Can Pursue When

question 31

Multiple Choice

There are three primary methods that organizations can pursue when attempting to integrate their supply chains.Which of the following is not one of them?

• A)informal agreements
• B)formal contracts
• C)vertical integration
• D)centralized organization

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Definitions:

Long Run

A period of time sufficiently long that all inputs or factors of production can be varied by firms, allowing them to fully adjust to market conditions.

Variable Costs

Expenses that vary directly with the amount of production or business activity.

Fixed Costs

Costs that do not change with the level of output or production, such as rent or salaries.

Average Fixed Costs

The total fixed costs of production divided by the number of units produced, showing how fixed costs per unit change with production levels.