Circuit Corp

question 41

Multiple Choice

Circuit Corp. is a manufacturer of a broad range of consumer electronics products. These consumer products are all highly profitable. The firm also manufactures a low-cost component which is an essential differentiating feature for most of their consumer products. The costs to manufacture this component have risen sharply in recent months. Internal cost accounting estimates now indicate the company is breaking even on the manufacture of this component. Which of the following is most likely?

• A) Circuit will likely continue to manufacture the component, even at a loss, due to low supplier power.
• B) Circuit will likely continue to manufacture the component, even at a loss, due to high strategic stakes.
• C) Circuit will likely discontinue manufacture the component due to low strategic stakes.
• D) Circuit will likely discontinue manufacture the component due to high supplier stakes.

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Definitions:

Matrix

A rectangular array of numbers, symbols, or expressions, arranged in rows and columns, that is used in mathematical and computational contexts.

Mixture

A combination of two or more substances where each substance retains its chemical properties.

Peanuts

Edible seeds enclosed in a hard shell, often regarded as a snack or food ingredient.

System of Linear Equations

A set of linear equations with the same variables; the solution is the set of values that satisfies all equations simultaneously.