Which Statement Is True Regarding a Cost Leadership Strategy

question 22

Multiple Choice

Which statement is true regarding a cost leadership strategy?

• A) Cost leadership determines a mandatory price for all competitors
• B) It is a strategy that derives from maintaining a low cost position
• C) It's target market is typically high end
• D) It is often ineffective

---

Definitions:

Nudge

A framing of choices by which governments and companies can, without coercion or altered incentives, encourage people to make choices that support their health, retirement savings, and well-being.

Choices

The act of selecting between two or more possibilities when faced with a decision.

Belief Perseverance

The phenomenon wherein individuals maintain their beliefs even in the face of contradictory evidence.

Evidence

Material or information presented in support of a claim or argument, typically used in legal or scientific contexts.