Which of the Following Statements Is True for Companies That

question 74

Multiple Choice

Which of the following statements is true for companies that employ cost strategies?

• A)They focus on high-quality production rather than efficient production.
• B)They are very specific in the skills they require from their employees.
• C)They shy away from investing in training employees in the skills they need.
• D)They seek greater creativity by providing broader career paths to employees than companies that employ differentiation strategy.
• E)They encourage their employees to take greater risks.

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Definitions:

Market Equilibrium

A state where the supply of a good matches its demand, with no external pressure to change the price or quantity available in the market.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, representing the additional gain to entrepreneurs beyond the normal profit rate.

Accounting Profits

The financial gain calculated by subtracting total explicit costs from total revenue, according to standard accounting practices.

Industry Expansion

The growth in production, workforce, or market share within a specific sector of the economy.