Overdrive Motors, a Manufacturer of Self-Driving Delivery Trucks, Is Working

question 62

Multiple Choice

Overdrive Motors, a manufacturer of self-driving delivery trucks, is working on developing its next-generation vehicles. It has decided on a strategy of focusing on a narrow buyer segment and outcompeting rivals by offering buyers customized vehicles at a lower cost than rivals. What basic strategic approach has Overdrive Motors decided upon?

• A) focused differentiation
• B) best-cost provider
• C) low-cost provider
• D) broad differentiation
• E) focused low-cost

---

Definitions:

Labor

Employment or tasks performed by workers for wages as part of the production process in the economy.

Positive Supply

A situation in which suppliers are willing to offer goods or services for sale, often as a result of positive prices or profitable conditions.

Long-Run Equilibrium

A state in which all firms in the market are making zero economic profit, and all inputs can be adjusted by managers.

Plaster

A building material used for coating walls and ceilings, consisting mainly of water, sand, lime, or gypsum.