Chapter 4

Question 1

Cost leadership

Answer 1

Are actions firm take to gain competitive advantages by operating in multiple markets or industries simultaneaously.

Question 2

Cost leadership

Answer 2

1. Size differences, Advantages of scale
2. Size differences, Disadvantage of scale
3. Technological advantages of scale
   Policy choices
   Experience differences & learning-curve economies
   Differential low-cost access to productive inputs

Question 3

Size differences & economies of scale exists of

Answer 3

1) specialized machines
2) Cost of plant and equipment
3) Volume of production and employee specialization
4) Overhead costs

Question 4

Size differences & diseconomies of scale exists of

Answer 4

1) Physical limits of efficient size
2) managerial diseconomies
3) demotivated workers
4) distance to markets and suppliers

Question 5

Experience differences and learning-curve economies

Answer 5

1) learning curve and economies of scale
2) learning curve and cost advantages
3) learning curve & competitive advantage
4) differential low-cost access to productive inputs
5) technological advantages independent of scale
6) policy choices

Question 6

organizational structure in cost leadership is most of the time..

Answer 6

U-form of a organizational structure.