Which of the Following Is a Risk a Company Takes

question 136

Multiple Choice

Which of the following is a risk a company takes when building a strategy around the experience curve?

• A) Competitors will likely not be able to meet the company's price cuts.
• B) Existing technologies are likely to become more expensive as the company expands.
• C) The method does not take competitors' prices into account.
• D) The method may cause consumers to become frustrated with changing prices.
• E) Aggressive pricing may give the product a cheap image, causing customers to lose interest.

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Definitions:

Adrenal Hormones

Chemical messengers produced by the adrenal glands, involved in the body's response to stress, metabolism, and the immune system.

Pineal Gland

A small endocrine gland in the brain that produces melatonin, a hormone that regulates sleep-wake cycles.

Hormones

Chemical messengers produced by glands in the body that regulate processes such as growth, metabolism, and mood.

Natural Opiates

Substances derived from the opium poppy plant that act on the nervous system to produce pain relief and euphoria.