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.

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Definitions:

Stereotypic Movement Disorder

A motor disorder characterized by repetitive, seemingly driven, and apparently purposeless motor behavior, such as hand waving or head banging.

Oral Expression

The ability to express thoughts, feelings, or information verbally.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a handbook used by healthcare professionals for diagnosing mental disorders.

Speech Sound Disorder

A communication disorder characterized by difficulties in producing speech.