If a Supply Firm Offers an Inventory Management System to Its

question 72

Multiple Choice

If a supply firm offers an inventory management system to its customers along with the products it sells,and the customers cannot afford give up the inventory system to use other suppliers,the first firm is following which strategy?

• A)Locking in customers
• B)Building switching costs
• C)Creating alliances
• D)Raising barriers to entry

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Definitions:

Laissez-Faire Capitalism

Laissez-Faire Capitalism is an economic system where private parties are free from government intervention like regulations, privileges, tariffs, and subsidies, with property rights upheld.

Economic Systems

Organized methods societies use to distribute goods and services, including capitalism, socialism, and mixed economies.

Factors of Production

The resources used in the creation of goods and services, traditionally categorized into land, labor, capital, and entrepreneurship.

Coordinate Economic Activity

The process of organizing and managing various facets of the economy to ensure efficient and effective functioning.