To Remain Number One, Leading Firms Can Take Any of Three

question 2

Multiple Choice

To remain number one, leading firms can take any of three actions. First, they can find ways to expand total demand. Second, they can protect their current market share through good defensive and offensive actions. Third, they can ________.

• A) focus exclusively on divestment
• B) evaluate current employees and reduce costs through downsizing
• C) run smaller companies out of business, causing them to sell out to larger firms
• D) try to expand their market share further, even if market size remains constant
• E) shut down current company locations and reopen in highly populated areas

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Definitions:

Service Company

A business that provides intangible products, such as services or expertise, rather than physical goods.

Cost Formula

An equation used to calculate the total cost of production, involving fixed and variable components.

Vehicle Operating Cost

refers to the expenses associated with using a vehicle, including fuel, maintenance, insurance, and depreciation.

Cost Formula

An equation used to determine the total cost of production, incorporating variable and fixed costs.