Which of the Following Is a Disadvantage of Cost Leadership

question 33

Multiple Choice

Which of the following is a disadvantage of cost leadership?

• A) The presence of a cost leader in an industry tends to discourage new firms from entering the business.
• B) Low prices for goods and services always lead to low customer base.
• C) Downplaying research and development can slow cost leaders' ability to respond to changes once they are detected.
• D) Cost leadership strategy makes companies vulnerable to price competition from rivals.
• E) Cost leadership strategy breaks down barriers to entry that protect the firm from new competition.

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Definitions:

Keratoconjunctivitis

An inflammation of the cornea and conjunctiva of the eye, often resulting from infection, dry eyes, or exposure to irritants.

Kerat/o

A prefix in medical terms related to cornea or keratin.

Sclera

The white outer layer of the eyeball, which provides protection and form to the eyeball.

Uvea

The middle layer of the eye that consists of the iris, ciliary body, and choroid, playing a critical role in the blood supply to the eye and controlling light entry.