The Table Below Shows the Quantity Demanded (In Thousands) and Quantity

question 26

Multiple Choice

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-If average costs of production decline with increases in output for a particular large firm in an industry:

• A)many small firms will be more efficient than the single large firm in the industry.
• B)the single large firm will be more efficient than many small firms in the industry.
• C)product diversification will be necessary for the firm to spread its overhead.
• D)diseconomies of scale become significant as its output increases.
• E)its variable cost of production will exceed its fixed costs.

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Definitions:

Diversification Analysis Matrix

A tool used in strategic management and planning to evaluate the degree of diversification within a company's portfolio of businesses or products.

Market-Product Strategies

Approaches that define how a company's products or services will be offered to meet the needs of specific market segments.

Market Share

The share of overall sales within an industry or market that a certain company acquires over a determined period.

Third-Party Logistics

Outsourced service providers that manage a company’s logistics, including transportation, warehousing, and fulfillment services.