In order to compete effectively,standard-cycle firms need ____.
A) organizational slack
B) economies of scale
C) first mover capability
D) total quality

Question

Quizplus · Accepted Answer

Economies of scale are important for standard-cycle firms to compete effectively as they produce similar products as their competitors and therefore need to lower their costs to offer competitive prices. Achieving economies of scale allows them to spread fixed costs over a larger volume of output, leading to lower average costs. This gives them a cost advantage over competitors and helps them maintain profitability. Organizational slack and first mover capability may be beneficial, but they are not as essential to competing effectively in a standard cycle market. Total quality is important, but it alone cannot guarantee competitiveness.

In Order to Compete Effectively,standard-Cycle Firms Need ____