Reducing the Number of Suppliers for an Item Carries an Increased

question 32

True/False

Reducing the number of suppliers for an item carries an increased risk of interruption in supply.

---

Definitions:

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit.

Efficient Scale

The level of production at which a firm or an industry can produce at the lowest average cost.

Maximum Profit

The highest possible financial gain a business can achieve from its operations, after all costs and expenses have been deducted.

Efficient Scale

The level of production at which a company can produce its goods or services at the lowest average cost per unit, achieving economies of scale.