Which of the Following Firms Exhibits a Cost Leadership Strategy

question 55

Multiple Choice

Which of the following firms exhibits a cost leadership strategy?

• A)​Company A's products meet customers' needs in several niche markets.
• B)​Company B takes a low-volume high-margin approach in targeting customers for its products.
• C) ​Company C targets customers who are willing to pay a premium price.
• D) ​Company D targets the average customer.

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Definitions:

Leisure Time

Free time that an individual can use for relaxation, recreation, or personal pursuits, not consumed by work or essential domestic activities.

Multiple Counting

In economics, it refers to the error of counting the same product or value more than once when calculating gross domestic product.

Psychic Costs

The mental and emotional energy expended by an individual in the process of decision-making or as a result of stressful economic conditions.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.