The Primary Goal of Managers When Dealing with Suppliers Is

question 1

Multiple Choice

The primary goal of managers when dealing with suppliers is to ensure a steady flow of ________.

• A)cash from investors into the organization
• B)inputs at the lowest price available
• C)customers at the distribution outlets
• D)industry entrants to help maximize the competition among suppliers
• E)cheap labour to produce products at the lowest possible cost

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Definitions:

Short Run

A period in economics where the output is influenced by the level of production capacity, and certain economic conditions or costs cannot change.

Long Run

In economics, a period in which all inputs can be adjusted by firms, and there are no fixed costs, allowing for full industry adjustment.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, begins to decrease.

Marginal Cost

The change in total production cost that arises when the quantity produced is incremented by one unit.