Telecommunications Giant Ericsson Has Been Tough to Beat in Spite

question 13

Multiple Choice

Telecommunications giant Ericsson has been tough to beat in spite of mergers between various makers of telecommunications networks. This is because Ericsson has managed to achieve economies of scale by _____.

• A) diversifying its product portfolio into unrelated markets
• B) producing on the flat portion of its learning curve
• C) increasing the number of stages in the vertical chain of production
• D) investing heavily in research and development and acquiring patents

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Definitions:

Voluminous Paperwork

Refers to an overwhelming amount of paperwork or documents that are often complex and extensive.

Fixed Budget

A budget that sets forth expected revenue, expenses, and profit for a company over a specific period, based on the assumption of a fixed level of activity.

Flexible Budget

A financial plan that shifts in response to alterations in activity or volume.

Overhead Costs

Expenses not directly attributable to the production of goods or services, such as rent, utilities, and administration.