The Average Cost of Production for a Bottle of Vitamin

question 71

Multiple Choice

The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7. StoreAll Inc. manufactures the same product for $3 per bottle and sells it for $7 per bottle. Which of the following statements is most likely true of StoreAll Inc. in this scenario?

• A) It has a competitive advantage in the industry.
• B) It has a competitive disadvantage in the industry.
• C) It has competitive parity with other firms in the industry.
• D) It has formed a strategic alliance with other firms in the industry.

---

Definitions:

Certification Election

A process involving a vote by employees to determine whether they wish to be represented by a particular labor union.

Representative

An individual chosen or elected to act and speak on behalf of a larger group, often in negotiating or legislative contexts.

Negotiations

The process of discussing terms and conditions between two or more parties with the aim to reach an agreement or compromise.

Authorization Card Campaign

A drive by a labor union to collect signed cards from employees indicating their interest in union representation, often as a preliminary step toward a unionization vote.