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Exam Code: C1000-083
Exam Name: Foundations of IBM Cloud V2
Certification Provider: IBM
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NEW QUESTION: 1
NEW QUESTION: 2
A technological factor that may lead to overbuilding in an industry is:
A. Inflated future expectations.
B. The need to add capacity in large increments.
C. The lack of a credible market leader.
D. Changes in industry structure.
The need to add capacity in large increments is a technological factor that may lead to overbuilding. The following are other such factors:
the presence of economies of scale or a steep learning curve encourages preemption:
long lead times for adding capacity increase the risk of competitive inferiority if a firm does not act quickly to begin raising its capacity;
when the minimum efficient scale increases, large plants are becoming more efficient even though demand is not growing; and
changes in production technology result in new construction while old plants remain in
operation, particularly when exit barriers are high.
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