Which of the Following Is Not a Good Option for Trying

question 32

Multiple Choice

Which of the following is not a good option for trying to remedy high internal costs vis-à-vis rival firms?

• A)Investing in productivity-enhancing,cost-saving technological improvements
• B)Redesigning the product or some of its components to permit more economical manufacture or assembly
• C)Implementing aggressive strategic resource mapping to permit across-the-board cost reduction
• D)Outsourcing high-cost activities to vendors or contractors who can perform them more economically
• E)Relocating high-cost activities (such as manufacturing)to geographic areas (such as China or Latin America or Eastern Europe)where they can be performed more cheaply

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Definitions:

Long Run

A period of time in economics where all factors of production and costs are variable, allowing full industry adjustment.

Economic Profit

The profit a company makes after subtracting both its explicit and implicit costs, including opportunity costs, from its total revenues.

Innovation

The introduction of new ideas, products, or methods, aiming at improving efficiency, value, or creating something novel.

Profit-Maximizing

A strategy aiming to achieve the highest possible profit from business operations.