One of Porter's Generic Business Strategies That Focuses on Reducing

question 197

Multiple Choice

One of Porter's generic business strategies that focuses on reducing expenses and, in turn, lowers product prices while targeting a broad array of market segments, is referred to as a

• A)differentiation focus strategy.
• B)cost focus strategy.
• C)differentiation strategy.
• D)cost leadership strategy.
• E)supply focus strategy.

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Definitions:

Stagflation

A situation in which the inflation rate is high, economic growth rate slows, and unemployment remains steadily high.

Price Level

A measure of the average prices of goods and services in an economy at a given time, often used to evaluate inflation or deflation.

Aggregate Output

The total quantity of goods and services produced in an economy at a given overall price level in a given period.

Aggregate Supply

The overall provision of goods and services that businesses in an economic setup aim to sell during a certain period.