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NEW QUESTION: 1
Firms in a fragmented industry have insignificant market shares and little influence on such matters as market price and total output. A likely economic cause of this fragmentation is the existence of:
A. A learning curve effect.
B. Low exit barriers.
C. Diseconomies of scale.
D. High entry barriers.
Answer: C
Explanation:
Important diseconomies of scale may favor fragmentation. For example, small, flexible firms have an advantage when the following needs are important:quick responses to style changes, the maintenance of low overhead, customization of a diverse product line to the special requirements of particular customers, substantial creative content in the product, individualized personal service, and local contacts and image.
NEW QUESTION: 2
A. Option D
B. Option B
C. Option A
D. Option C
Answer: C
Explanation:
CHARGEBACK METHODS
A range of approaches have been developed for implementing chargeback in an organization, as summarized in the figure below. The degree of complexity, degree of difficulty, and cost to implement decreases from the top of the chart [service-based pricing (SBP)], to the bottom [high-level allocation (HLA)]. HLA is the simplest method; it uses a straight division of IT costs based on a generic metric such as headcount. Slightly more effort to implement is low-level allocation (LLA), which bases consumer costs on something more related to IT activity such as the number of users or servers. Direct cost (DC) more closely resembles a time and materials charge but is often tied to headcount as well.
References: https://journal.uptimeinstitute.com/it-chargeback-drives-efficiency/
NEW QUESTION: 3
A. Option D
B. Option B
C. Option A
D. Option E
E. Option C
Answer: C
Explanation:
Explanation
2-5 - Policy Interpretation
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