A Manufacturer of Automobile Component Parts That Has Turned Over

question 6

Multiple Choice

A manufacturer of automobile component parts that has turned over all transportation functions to an independent third party in its supply chain has engaged in:

• A) creating a dependent materials-handling system
• B) outsourcing
• C) removing entry barriers
• D) task deployment
• E) channel rotation

---

Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to competition based on factors other than price.

Excess Capacity

A situation where a firm is operating below its maximum output level, indicating that it has available resources that are not being fully utilized.

Economic Profits

The offset between gross income and total liabilities, embracing both visible and hidden expenses.

Excess Capacity

The situation in which a firm operates below its maximum potential production level, indicating underutilization of resources.