The Four Possible Strategies That Can Be Pursued for Each

question 75

Short Answer

The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________.
harvesting; divesting
promoting; selling
downsizing; expanding
diversifying; penetrating
developing; growing

---

Definitions:

Economies of Scale

Cost advantages that entities attain due to the scale of operation, with costs per unit of output generally decreasing with increasing scale.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, measuring the performance exceeding opportunity costs.

Short-Run Equilibrium

The condition in which supply and demand are equal at a particular price level, within a short time frame, before all variables have fully adjusted.

Profit-Maximizing

The process or goal of a firm to adjust its production and sale strategies to achieve the highest possible profits.