Question

A state-wide alliance of independent hospitals has formed in order to do group purchasing of medical supplies. Group purchasing allows the hospital alliance to negotiate lower prices with suppliers because of the large quantity of materials ordered. This is an example of the advantage of ____ resulting from an alliance.

a.explicit collusion
b.economies of scale
c.opportunistic behavior
d.distribution opportunities

Answer 1

Answer:

b.economies of scale

Explanation:

A state-wide alliance of independent hospitals has formed in order to do group purchasing of medical supplies. Group purchasing allows the hospital alliance to negotiate lower prices with suppliers because of the large quantity of materials ordered. This is an example of the advantage of economies of scale resulting from an alliance. for example in production unit if the cost per unit is less than the quantity produced.