Which of the following accurately describes a supply chain map in the context of competitive markets?

• A. A chart showing the equilibrium price and quantity in a competitive market.
• B. A visual representation of the flow of goods, services, and information from raw materials to final consumers.
• C. A diagram illustrating the relationship between marginal cost and marginal revenue.
• D. A schedule listing the prices and quantities supplied by individual firms.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of a supply chain map. In microeconomics, a supply chain map visually represents the entire process through which goods and services move from the initial raw materials stage to the final consumer, including all intermediate steps.
2. Step 2: Recognize that a supply chain map focuses on the flow of goods, services, and information, rather than on prices or quantities directly related to market equilibrium or firm-level supply schedules.
3. Step 3: Differentiate a supply chain map from other economic diagrams such as equilibrium charts (which show price and quantity where supply equals demand), marginal cost and marginal revenue graphs (used to analyze firm profit maximization), and supply schedules (which list quantities supplied at various prices).
4. Step 4: Conclude that the correct description of a supply chain map is a visual representation of the flow of goods, services, and information from raw materials to final consumers.
5. Step 5: Verify that the other options describe different economic concepts and do not match the definition of a supply chain map.