A __________ Strategy Has a __________ Strategic Target, and __________

question 33

Multiple Choice

A __________ strategy has a __________ strategic target, and __________ is/are its source of advantage.

• A) focused differentiation; narrow; low costs
• B) cost leadership; narrow; distinctiveness
• C) focused cost leadership; narrow; low costs
• D) differentiation; broad; low costs
• E) focused differentiation; broad; distinctiveness

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Definitions:

Optimal Output

The level of production that maximizes a firm's profit, or the most efficient allocation of resources in producing a good or service.

Price to Clear

The price to clear is the market price at which the quantity supplied equals the quantity demanded, thereby clearing the market without leaving surplus or shortage.

Perfectly Competitive Industry

A Perfectly Competitive Industry is characterized by many sellers and buyers, free entry and exit, and a product that is identical across suppliers, leading to no single entity having market control.

Marginal Cost

The additional cost of producing one extra unit of a good or service.