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.

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Definitions:

Internal Locus

A psychological concept referring to individuals who believe they can control their life events and outcomes through their own efforts.

Dependence

The state of relying on or being controlled by something or someone else.

Low Energy Level

A state of reduced physical or mental activity, often signifying decreased vitality and stamina available for tasks.

Tolerance For Ambiguity

The ability to remain comfortable and function effectively in situations that are uncertain, unclear, or unfamiliar.