Sematech Is a Producer of Computer Chips

question 84

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.
-If Sematech were to continue seeking methods to maintain the company's cost-leadership position that would be costly to duplicate, which of the following is most likely to be a basis of cost leadership that may be costly to duplicate?

• A) establishing economies of scale
• B) exploiting learning-curve economies
• C) purchasing new technological hardware
• D) securing differential access to low-cost productive inputs

---

Definitions:

Dioecious Plant

A dioecious plant has male and female reproductive structures on separate plants, meaning a single plant produces only male or only female flowers.

Phototropism

Growth response of plant stems to light; stems demonstrate positive phototropism.

Gravitropism

Growth response of roots and stems of plants to the Earth’s gravity; roots demonstrate positive gravitropism, and stems demonstrate negative gravitropism.

Auxin

A class of plant hormones that regulates growth and facilitates various developmental processes, including cell elongation.