Which of the Following Is True of a Low-Cost Strategy

question 81

Multiple Choice

Which of the following is true of a low-cost strategy?

• A) It fares best in an organization with an informal structure.
• B) It fares best in an organization with more liberal norms.
• C) It fares best in an organization that gives its employees a lot of autonomy.
• D) It is aimed at increasing the value of goods as perceived by customers.
• E) It gives managers greater control over the organizational activities.

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Definitions:

Diminishing Marginal Utility

The principle that as a person increases consumption of a product, there is a decline in the additional satisfaction or utility that person gains from consuming one more unit of the product.

Demand Curve

A graph showing the relationship between the quantity of a good that consumers want to buy and its price.

Downward Slope

A graphical representation indicating a decrease or decline in value, often used in reference to graphs showing relationships such as demand curves.

Topographical Map

A type of map characterized by large-scale detail and quantitative representation of relief, usually using contour lines.