Podcast
Questions and Answers
What is the main advantage of lumpy resources and activities?
What is the main advantage of lumpy resources and activities?
- They enable firms to spread costs over larger volumes of output (correct)
- They promote task specialization and division of labor
- They allow firms to offer specialized expertise across a broad range of know-how
- They lead to lower costs as a percentage of sales for market leaders
How does increased scale contribute to greater task specialization?
How does increased scale contribute to greater task specialization?
- By enabling firms to spread costs over larger volumes of output
- By promoting learning and automation in knowledge-intensive industries
- By breaking down the production process into separate tasks performed by specialized workers (correct)
- By allowing firms to offer specialized expertise across a broad range of know-how
What is the basis of the experience curve in creating cost advantage?
What is the basis of the experience curve in creating cost advantage?
- Offering specialized expertise across a broad range of know-how
- Learning-by-doing and repetition that develops individual skills and organizational routines (correct)
- Division of labor and task specialization in knowledge-intensive industries
- Spreading costs over larger volumes of output to achieve economies of scale
How did Intel achieve dominance in the world microprocessor market?
How did Intel achieve dominance in the world microprocessor market?
What was a major factor leading to increased unit costs for Boeing during 2006–2011?
What was a major factor leading to increased unit costs for Boeing during 2006–2011?
During the 2008–2009 recession, what was essential for survival in hard-hit sectors such as house building, construction equipment, and retailing?
During the 2008–2009 recession, what was essential for survival in hard-hit sectors such as house building, construction equipment, and retailing?
What do residual efficiencies relate to, according to the text?
What do residual efficiencies relate to, according to the text?
Where do excess costs have a tendency to accumulate within a firm, according to the text?
Where do excess costs have a tendency to accumulate within a firm, according to the text?
What impact does underutilization of plant capacity have on unit costs?
What impact does underutilization of plant capacity have on unit costs?
How does pushing output beyond normal full capacity impact unit costs?
How does pushing output beyond normal full capacity impact unit costs?
In what way does ownership of low-cost sources of material offer a cost advantage?
In what way does ownership of low-cost sources of material offer a cost advantage?
How does the hourly rate in Chinese auto assembly plants compare to that in the US?
How does the hourly rate in Chinese auto assembly plants compare to that in the US?
