Which of the following best describes a supply chain?

• A. A list of prices at which a firm is willing to sell its products.
• B. A method for determining the equilibrium price in a market.
• C. A government policy that regulates the production of goods and services.
• D. A network of individuals, organizations, resources, and activities involved in producing and delivering a product to the final consumer.

Answer: (D)

Verified step by step guidance

1. Understand the concept of a supply chain in microeconomics: it refers to the entire system involved in producing and delivering a product, including all individuals, organizations, resources, and activities.
2. Recognize that a supply chain is not simply a list of prices or a pricing method; rather, it encompasses the flow of goods and services from raw materials to the final consumer.
3. Eliminate options that describe pricing strategies or government policies, as these do not capture the full scope of production and delivery processes.
4. Identify that the correct description must include the network aspect, highlighting the interconnected roles and stages in bringing a product to market.
5. Conclude that the best description of a supply chain is: 'A network of individuals, organizations, resources, and activities involved in producing and delivering a product to the final consumer.'