Sematech Is a Producer of Computer Chips

question 40

Multiple Choice

Sematech is a producer of computer chips. To gain an advantage over other computer chip makers, Sematech focuses on reducing its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of Sematech's competitors have begun to reduce the company's competitive advantage. In response to this threat, Sematech has decided to add production capacity in an effort to lower costs.
-If Sematech's expansion plans did not produce the desired cost savings but the company decided to continue production expansion in an effort to capture cost reductions, this would be an example of

• A) economies of scale.
• B) escalation of commitment.
• C) diseconomies of scale.
• D) managerial diseconomies.

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Definitions:

Secure Attachment

A stable and healthy emotional bond between an infant and their caregiver, characterized by trust and a sense of safety.

Separation Anxiety

Emotional distress experienced by individuals, particularly children, when separated from familiar caregivers or environments.

Caregiver

A person who provides care for another individual, often a family member or friend who has a disability, chronic illness, or is of aging.

Upset

A state of being unhappy, disappointed, or worried.