A firm that is not on the cost-responsiveness efficient frontier can improve
A) both responsiveness and cost performance.
B) only responsiveness.
C) only cost performance.
D) responsiveness, but not cost performance.
E) neither responsiveness nor cost performance.

Question

Quizplus · Accepted Answer

If a firm is not on the cost-responsiveness efficient frontier, it means that it is not achieving the optimal level of cost and responsiveness efficiency. Therefore, there is room for improvement in both cost and responsiveness performance. By improving these factors, the firm can move towards the efficient frontier and become more competitive in the market. Thus, choice A is correct as it states that both responsiveness and cost performance can be improved.

A Firm That Is Not on the Cost-Responsiveness Efficient Frontier