Actions That a Company Should Take to Perform Value Chain

question 5

Multiple Choice

Actions that a company should take to perform value chain activities more cost-effectively ordinarily will not be concerned with

• A)striving to capture all available economies of scale and taking advantage of experience and learning-curve effects.
• B)trying to operate facilities at full capacity.
• C)adopting labor-saving operating methods.
• D)improving supply chain efficiency.
• E)over-differentiating so that product features exceed the needs of most buyers.

---

Definitions:

Deadweight Loss

A loss in total societal welfare that occurs when market equilibrium is not achieved or when market imperfections exist, leading to inefficient allocation of resources.

Relatively Inelastic

Describes a situation where the demand for a good or service changes by a smaller percentage than changes in its price.

Deadweight Loss

A situation where inefficiency in the market leads to a loss of total social welfare, typified by a gap between the supply and demand curves.

Relatively Elastic

Describes a situation where the demand or supply for a good or service significantly changes in response to changes in price.