The Strategy of ___________ Involves Choosing the Value-Added Stages of the Raw-Material-To-Consumer

question 53

Multiple Choice

The strategy of ___________ involves choosing the value-added stages of the raw-material-to-consumer chain in which to compete.

• A) diversification based on economies of scope
• B) diversification based on acquisition and restructuring
• C) cost leadership
• D) differentiation
• E) vertical integration

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Definitions:

Inputs

Resources used in the process of production, including labor, materials, and capital.

Derived Demand

Derived demand occurs for a factor of production when the demand for another good or service drives it, such as the demand for raw materials increasing due to higher demand for the final product.

Factor of Production

An economic resource used in the production of goods and services, including labor, capital, land, and entrepreneurship.

Market

A group of buyers and sellers of a particular good or service.