Two Analytical Tools Useful in Determining Whether a Company's Prices

question 39

Multiple Choice

Two analytical tools useful in determining whether a company's prices and costs are competitive are

• A)SWOT analysis and key success factor analysis.
• B)SWOT analysis and benchmarking.
• C)value chain analysis and benchmarking.
• D)competitive position assessment and competitive strength assessment.
• E)driving forces analysis and SWOT analysis.

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Definitions:

Labor Demand Schedule

A table or graph showing the quantity of labor that employers are willing to hire at different wage rates.

Profit-maximizing Combination

The selection of production inputs, price, and output levels that allow a firm to achieve the maximum possible profit.

Production Costs

The overall expenses associated with manufacturing goods or providing services, including labor, materials, and overhead.

Elasticity of Resource Demand

The responsiveness of the quantity demanded of a resource to a change in its price.