Sematech Is a Producer of Computer Chips

question 28

Multiple Choice

Sematech is a producer of computer chips. To gain an advantage over other computer chip makers, Sematech focuses on reducing its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of Sematech's competitors have begun to reduce the company's competitive advantage. In response to this threat, Sematech has decided to add production capacity in an effort to lower costs.
-By increasing production volume in an effort to reduce costs, Sematech is pursuing which sources of cost advantage?

• A) size differences and diseconomies of scale
• B) differential access to productive inputs
• C) size differences and economies of scale
• D) technological advantages

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