Which of the Following Corporate Strategies Is Being Employed When

question 121

Multiple Choice

Which of the following corporate strategies is being employed when a large grocery store purchases a dairy farm to supply all of the store-brand milk, yogurt, butter, and cheese?

• A)differentiation strategy
• B)conglomerate diversification
• C)vertical integration
• D)low-cost strategy
• E)functional strategy

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Definitions:

Pure Competition

A market structure in which a very large number of firms sells a standardized product, into which entry is very easy, in which the individual seller has no control over the product price, and in which there is no nonprice competition; a market characterized by a very large number of buyers and sellers.

Equivalents

Items or entities that are fundamentally equal in value or function in the context of a specific comparison.

Profit-maximizing

The process or methodology by which a business seeks to find the best output and sales levels to achieve the highest profits possible.

Marginal Revenue Product

The extra income produced by using an additional unit of a resource, like labor or capital.