Use of Information Systems to Enable a Focused Strategy on a Single

question 127

Multiple Choice

Use of information systems to enable a focused strategy on a single market niche is a tactic to achieve ________.

• A)low-cost leadership
• B)product differentiation
• C)focus on market niche
• D)customer and supplier intimacy

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Definitions:

Shut Down

A short-term decision by a company to cease operations temporarily due to unfavorable market conditions or to minimize losses when variable costs exceed total revenues.

Maximizes Profit

The strategy or process implemented to increase the difference between total revenue and total costs to the highest possible amount.

Marginal Revenue

Income gained by selling an additional unit of a product or service.

Marginal Cost

The increased expenditure incurred from producing one more unit of a product or service.