Which of the Following Is True of the Diversification Trend

question 59

Multiple Choice

Which of the following is true of the diversification trend today?

• A) In response to global trends,most companies are becoming more diversified.
• B) In Latin America and other emerging economies,such as South Korea and India,focused firms continue to dominate the private sector.
• C) A better match between the firm's core competencies and its environmental opportunities and threats leads to increased diversification.
• D) A number of U.S.firms continue to maintain high levels of diversification.

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Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and the freedom of entry and exit, resulting in firms being price takers.

Marginal Cost

The additional cost incurred by producing one more unit of a product, a crucial concept in economics for determining optimal production levels.

Transformative Effects

Significant changes or impacts that alter the structure or functioning of a system, society, or economy.

Competition

The rivalry among sellers in the market striving for a greater share of profits by offering the best possible terms to consumers.