Sematech Is a Producer of Computer Chips

question 23

Multiple Choice

Sematech is a producer of computer chips. To gain an advantage over other computer chip makers, Sematech focuses on reducing its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of Sematech's competitors have begun to reduce the company's competitive advantage. In response to this threat, Sematech has decided to add production capacity in an effort to lower costs.
-If Sematech were to choose to narrow its product line in an effort to reduce costs, this would be an example of

• A) technological software.
• B) a policy choice.
• C) a competitive advantage.
• D) a learning-curve effect.

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Definitions:

Supply

The total amount of a specific good or service that is available to consumers, often influenced by the price as well as other factors.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.

Milk

A nutritious white liquid food produced by the mammary glands of mammals, used as a primary source of nourishment for young mammals before they are able to digest other types of food.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.