Intel Was Able to Gain a Significant Cost Advantage Over

question 41

Multiple Choice

Intel was able to gain a significant cost advantage over its competitors in the production and sale of microprocessors because of

• A) capital requirements.
• B) product differentiation.
• C) switching costs.
• D) economies of scale.
• E) access to distribution.

---

Definitions:

Net Working Capital

The gap between what a business owns as current assets and what it owes in current liabilities, revealing the liquid funds available for operational purposes.

Sunk Cost

Costs that have already been incurred and cannot be recovered or altered by future actions.

Investment Decision

The process of evaluating and selecting where to allocate funds in various financial instruments or projects to maximize returns or achieve financial goals.

Accelerated Write-Off

A method of depreciation where an asset loses book value at a faster rate than the traditional straight-line method, often for tax benefits.