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Sematech Is a Producer of Computer Chips

question 26

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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 employing a low-cost competitive strategy, Sematech has made itself

Grasp the role of the marginal investor in determining stock prices.
Understand the basic principles of the dividend discount model in stock valuation.
Recognize the premise of market equilibrium and its implications for investment.
Understand the effects of changes in aggregate demand and supply on price levels and output.

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