According to Research by Dovev Lavie, Which of the Following

question 44

Multiple Choice

According to research by Dovev Lavie, which of the following is a value creation strategy?

• A) setting organizational buffers between competing partners
• B) allying with multiple partners in one industry to limit power
• C) integrating network and internal resources to create synergies
• D) aligning organizational units to create coherent interfaces

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Definitions:

Average Total Costs

The total cost of production (fixed plus variable costs) divided by the total quantity of output, indicating the cost per unit of output.

Variable Costs

Costs that change in proportion to the level of output or activity.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Economic Profits

Profits exceeding the total opportunity costs of a business, indicating it is outperforming its next best alternative.