Final answer:
The list of functions in proper value chain order is 'Research and development, marketing, and customer services,' though it should include 'production' between R&D and marketing to fully align with the value chain concept.
Step-by-step explanation:
The question is which one of the provided lists of functions is in the proper order according to the value chain. In business management, the value chain is a series of activities that a company operates in a system to deliver a product from conception to distribution and after-sales service. The correct order of the value chain functions would ideally start with research and development (R&D), followed by production, then proceed to marketing, and finally the product would be supported by customer services. Hence, the first option, 'Research and development, marketing and customer services,' is closer to the proper value chain order, considering that marketing should come after production.
Important production decisions that define a firm's behavior are crucial in the value chain. These decisions include what products to produce, how to produce them, the amount of output, pricing, labor requirements, and these are influenced by production and cost conditions as well as market structure.