A Company That Follows a Low-Cost Strategy Could Reasonably Be

question 20

Multiple Choice

A company that follows a low-cost strategy could reasonably be expected to reduce costs by:

• A) increasing the number of business processes.
• B) adopting lean production and flexible manufacturing technologies.
• C) implementing first-in-first-out inventory control systems.
• D) taking steps to increase customer churn.
• E) abandoning economies of scale and learning effects.

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Definitions:

Output

The total amount of goods or services produced by a business, industry, or economy.

Production Function

A mathematical model that describes the relationship between input resources and the output of goods or services a firm can produce.

Isoquant

A curve that represents all the combinations of inputs that result in the production of a given level of output, showcasing the trade-off between different factors of production.

Output

The amount of goods or services produced by a company, industry, or economy within a specific period.