Which of the Following Is an Implication of All Firms

question 63

Multiple Choice

Which of the following is an implication of all firms in an industry pursuing a low-cost position through application of competitive benchmarking?

• A) No firm would face direct competition from others in the industry; hence, profit potential would be high.
• B) Each firm would be catering to a different customer segment.
• C) The firms would eventually have no resources to invest in product and process improvements.
• D) Each firm would be in a better position to gain a competitive advantage.

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Definitions:

North American

Pertaining to or relating to the continent that comprises Canada, the United States, Mexico, and the countries of Central America.

Trade Agreement

A contract between nations regarding their trade relationships, including terms on tariffs, trade restrictions, and other aspects of international trade.

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries or retaliate in trade disputes.

Axis Alliance

A military and political alliance formed during World War II between Germany, Italy, and Japan, which opposed the Allied Powers.