One of ValuTech's Objectives for the Year Is to Bring

Multiple Choice

One of ValuTech's objectives for the year is to bring down the firm's production costs by 5 percent. To meet this objective, managers have suggested the following alternatives:
(1) Use alternate suppliers who can provide raw materials at a lower cost.
(2) Adopt cutting-edge technology that makes the production process more efficient.
-What is the underlying assumption in the second alternative?

A) Competitors are also likely to adopt high-end technology.
B) Consumers' purchase decisions are directly influenced by the manufacturing process.
C) The availability of better technology translates into higher worker productivity.
D) The costs associated with upgrading will outweigh the benefits.
E) Alternate suppliers can provide raw materials at a lower cost.