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Sergeu [11.5K]
4 years ago
9

If an important component of a firm's production is difficult to specify in a contract and even more difficult to enforce in its

production standards, then it probable makes sense to:____________.
a) buy the component in the open market
b) use a simple short term contract
c) take the risk necessary to buy the component
d) vertically integrate upstream to build the component
Business
1 answer:
Tanya [424]4 years ago
7 0

Answer: d) vertically integrate upstream to build the component

Explanation:

Every good has a supply line from the suppliers who supply the raw  materials required to the Producers who convert it to the distributor that brings it to the final user. Vertical Integration refers to when a company such as the producers acquires another company in the supply chain to make things easier for them for instance acquiring the suppliers of a raw material that they need.  A practical example would be DeBeers acquiring rights to a diamond mine.

The company in question can engage in Vertical Integration and acquire a supplier that produces the component so that it can be able to specify how it should be made and enforcing production standards.

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A cost incurred in the past that is not relevant to any current decision is classified as a(n):_________
inessss [21]

A cost incurred in the past that is not relevant to any current decision is classified as a(n): Sunk costs

This is further explained below.

<h3>What are Sunk costs?</h3>

Generally, A cost that has already been incurred but cannot be recouped is referred to as a "sunk cost" in economics and the process of making business decisions. In contrast to sunk costs, prospective costs are future expenses that might be avoided if action is done, while sunk costs have already been incurred.

In conclusion, A cost that was incurred in the past but is not relevant to any choice that is being made at this time is considered to be a(n): Incurred expenses

Read more about Sunk costs

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6 0
2 years ago
What type of degree do u need to have to be a hairstylist?
Ksju [112]
Hello there.

Question: <span>What type of degree do u need to have to be a hairstylist?

Answer: You would need a high school diploma or a GED for cosmetology school. You would then need an associate's degree in cosmetology.

Hope This Helps You!
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6 0
4 years ago
An economy enters an expansion and GDP increases from $34,000 to $40,000. What is the percent change in real GDP? Round your ans
Blababa [14]

The percent change in real GDP is 17.65%

<h3>What is the GDP of an economy?</h3>

The gross domestic product (GDP) is the sum of all value contributed to a given economy. The value-added is the difference between the value of the products and services produced and the value of the goods and services required to produce them.

The percent change in real GDP can be calculated by using the formula:

\mathbf{=\dfrac{New \ GDP - Old \ GDP}{Old \ GDP } \times 100}

\mathbf{=\dfrac{40000 -34000}{34000 } \times 100}

= 17.65%

Learn more about gross domestic product (GDP) here:

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6 0
2 years ago
A lack of trust between two parties engaged in international trade is exacerbated by the narrowing distance between the two part
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3 years ago
Derek, an employee at ferns tech inc., has filed a lawsuit against his employer. he claims that after the introduction of an aff
rodikova [14]
<span>This may be an example of </span>"reverse discrimination".


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