Which Strategy Would Be Most Appropriate When the Distinctive Competencies

question 62

Multiple Choice

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well?

• A)Divestiture
• B)Retrenchment
• C)Joint venture
• D)Integration
• E)Conglomerate diversification

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Definitions:

Variable Input

A production input whose quantity can be changed in the short term to influence output.

Fixed

Related to something that is unchanging, constant, or securely attached and not subject to variation.

SAC Curves

Short-run average cost curves represent how a firm's average costs vary with output in the short term.

LAC Curves

Long Average Cost curves, which show the minimum average cost of production at different levels of output, assuming all production factors are variable.