Which of the Following Is a Disadvantage of a Cost

question 36

Multiple Choice

Which of the following is a disadvantage of a cost leadership strategy?

• A) The strategy is too easily imitated.
• B) It attempts to stay ahead of the competition may lead to gold plating.
• C) Cost differences increase as the market matures.
• D) Producers are more able to withstand increases in suppliers' cost.

---

Definitions:

Goods

Physical items that satisfy human wants and provide utility, which can be bought, sold, and used.

Renewable Natural Resource

A resource that can be replenished naturally over time, such as solar energy, wind, and biomass.

Aquifers

Underground layers of water-bearing permeable rock, rock fractures, or unconsolidated materials from which groundwater can be extracted.

Coal

A combustible black or brownish-black sedimentary rock used primarily as a fuel in electricity generation.