If the Potential Responses of Competing Firms Are Likely to Be

question 45

Multiple Choice

If the potential responses of competing firms are likely to be very detrimental to the costs advantages of cost leaders,firms pursuing a cost-leadership competitive strategy should

• A) drop their prices below competitors' prices to increase overall economic performance through increased volumes of profitable sales.
• B) raise their prices above competitors,increasing overall economic performance through higher margins.
• C) focus on a specific niche market to avoid direct competition with aggressive competitors.
• D) set their prices equal to competitors' prices,sacrificing some market share for increased profit margins and the release of less information.

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Definitions:

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A collaborative method where participants actively create and develop outcomes or knowledge together rather than it being delivered by a single source.

Followership Study

The examination of the behaviors and attitudes of individuals who follow or are led by others, often focusing on their roles, effectiveness, and dynamics within groups.

Training and Development

Organizational activities aimed at enhancing the skills, knowledge, and competencies of employees to improve their performance and growth.

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