Sematech Is a Producer of Computer Chips

question 23

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 choose to narrow its product line in an effort to reduce costs, this would be an example of

• A) technological software.
• B) a policy choice.
• C) a competitive advantage.
• D) a learning-curve effect.

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Definitions:

Billing Statement

A summary of transactions, payments, credits, and fees on an account over a specific period, typically issued periodically by creditors to debtors.

Truth In Lending Act

A United States federal statute aimed at fostering informed consumer credit utilization through mandating the disclosure of its terms and expenses.

Extending Credit

The act of granting a customer the ability to purchase goods or services now and pay for them at a later date, based on trust that payment will be made in the future.

Consumer Credit

Financing extended to consumers to allow them to purchase goods and services and repay the money over time.