Which of the Following Is Not One of the Objectives

question 5

Multiple Choice

Which of the following is not one of the objectives of benchmarking?

• A) To identify the best practices in performing various value chain activities
• B) To learn how best practice companies achieve lower costs or better results in performing benchmarked activities
• C) To help construct a company value chain and identify which activities are primary and which are support activities
• D) To develop cross-company comparisons of the costs of performing specific value chain activities
• E) To take actions to improve a company's cost competitiveness when benchmarking reveals that its costs and results of performing an activity are not as good as what other companies have achieved

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Definitions:

Monopolistically Competitive

A market structure characterized by many sellers offering differentiated products, leading to some degree of market power but still allowing for competition.

Efficient Use

The optimal utilization of resources to achieve the highest possible output or satisfaction with the least possible waste.

Minimum ATC

The point on a firm’s average total cost curve where the cost is at its lowest, representing the most efficient scale of production.

Optimal Scale

The size of a company or factory at which the costs of production are minimized and productivity is maximized.