DI Question 9 2 pts An investor is evaluating investment opportunities in two se

Question

DI Question 9 2 pts An investor is evaluating investment opportunities in two separate start-up companies. The investor believes in the industrial organization (/O) model of above-average returns and is using that to inform his decision. Both start-up companies will manufacture healthy foods with no artificial additives, low salt, low sugar, and high fiber. Gamma Foods has a strategy of producing a differentiated product for which consumers will pay more. Delta Foods is in the health-foods industry because of its corporate culture and commitment to healthy lifestyles, but it does not have any executives with experience in food production. Which firm is most consistent with the model of industrial organization? O Both firms are consistent with the /O approach. O Gamma Foods Delta Foods At the entrepreneurial stage, the model that companies follow is not important. ( ) Question 10 2 pts

Explanation / Answer

According to the I/O model, it can be mentioned that Gamma food strategy has a differentiated product where the high pay can get to give the above average returns on the whole and this is consistent.

Therefore (b) Gamma Foods is the answer

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