Circuit Inc

question 100

Multiple Choice

Circuit Inc. is a manufacturer of a broad range of consumer electronics products. These consumer products are all highly profitable. The firm also manufactures a low-cost component that is an essential differentiating feature for most of its consumer products. The costs to manufacture this component have risen sharply in recent months. Internal estimates now indicate the company is breaking even on the manufacture of this component. Which of the following is most likely?

• A) Circuit will likely continue to manufacture the component, even at a loss, due to low supplier power.
• B) Circuit will likely continue to manufacture the component, even at a loss, due to high strategic stakes.
• C) Circuit will likely discontinue manufacture of the component due to low strategic stakes.
• D) Circuit will likely discontinue manufacture of the component due to high supplier stakes.

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Definitions:

Politics Influence

The impact that politics and governmental policies have on decision-making processes and social and economic outcomes.

Judicial Review

A process by which courts evaluate the constitutionality of legislative acts or government actions.

Marbury V. Madison

A landmark Supreme Court case in 1803 that established the principle of judicial review in the United States, asserting the court's authority to check the compatibility of laws with the Constitution.

Article III

The section of the United States Constitution that establishes the judicial branch, including the Supreme Court and lower courts.