Final answer:
During the procurement process in the Distribution Game, businesses acquire raw materials and inventory essential for production, influenced by market supply, demand, and competition.
Step-by-step explanation:
In the context of the Distribution Game, the correct answer is C) Acquiring raw materials and inventory. During the procurement process, businesses engage in the activity of obtaining all the essential components, including raw materials and inventory needed for production. This is crucial to ensure that the production of goods and services can take place smoothly. It also entails making decisions that affect the production such as what products to produce, production processes, output quantity, and labor requirements all under the influence of market supply, demand, and competition.
The law of supply and demand explains how these market forces establish product availability and pricing. When the demand for a product is higher than what is available, prices will likely increase. Conversely, when there is more supply than demand, prices can drop. Similarly, in a competitive market, businesses might reduce prices or improve the quality of their products to attract customers.
Overall, the procurement process is a fundamental stage where businesses strategically procure needed resources to fulfill consumer demand while balancing costs.