Achieving a Cost Advantage Over Rivals Entails

question 28

Multiple Choice

Achieving a cost advantage over rivals entails:

• A) concentrating on the primary activities portion of the value chain and outsourcing all support activities.
• B) being a first-mover in pursuing backward and forward integration and controlling as much of the industry value chain as possible.
• C) performing value chain activities more cost-effectively than rivals and finding ways to eliminate or bypass some cost-producing activities altogether.
• D) minimizing R&D expenses and paying below-average wages and salaries to conserve on labor costs.
• E) producing a standard product,redesigning the product infrequently,and having minimal advertising.

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Definitions:

Elasticity Of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively measured as the percentage change in quantity demanded relative to a percentage change in price.

Elasticity Of Supply

A measure of how much the quantity supplied of a good changes in response to a change in its price.

Tax Revenue

It's the income that is collected by governments through taxation.

Excise Tax

A tax on specific goods, such as alcohol and tobacco, typically imposed at the point of manufacture or sale.