Mature industries can require drastic intervention to reduce costs because:
A)Corporate restructuring is easier to implement in mature industries
B)Market pruning allows us to focus on more attractive industries
C)Cost efficiencies tend to be institutionalized
D)Cost inefficiencies tend to be institutionalized

Question

Quizplus · Accepted Answer

Mature industries tend to have longstanding practices and traditions that can lead to inefficiencies and resistance to change. Therefore, drastic intervention may be necessary to overcome these ingrained habits and reduce costs. Option A is not necessarily true for all mature industries, and option B is not relevant to the question. Option C is the opposite of the correct answer - cost efficiencies, not inefficiencies, tend to be institutionalized in mature industries.

Mature Industries Can Require Drastic Intervention to Reduce Costs Because