Which Component of Strategy Measures the Reduction in Costs Attributable

question 72

Multiple Choice

Which component of strategy measures the reduction in costs attributable to a reduction in the quantity of inputs used in Year 2 relative to the quantity of inputs that would have been used in Year 1 to produce the Year 2 output?

• A) the growth component
• B) the price-recovery component
• C) the productivity component
• D) the cost leadership component