Which of the Following Statements About Cost Leadership and the Threat

question 29

Multiple Choice

Which of the following statements about cost leadership and the threat of buyers is accurate?

• A) If buyers demand increased quality or service, cost leaders can absorb these costs and may still have a cost advantage over the competition.
• B) Being a cost leader encourages buyer backward vertical integration.
• C) Firms pursuing a cost-leadership strategy are especially vulnerable to powerful buyers who insist on low prices or higher quality and service from their suppliers.
• D) Cost leaders are not able to absorb costs associated with buyers' demands for increased quality or service.