A Low-Cost Position Is Most Appropriate When

question 49

Multiple Choice

A low-cost position is most appropriate when:

• A) the power of buyers is low and barriers to entry are high.
• B) economies of scale are relatively unimportant in manufacturing products.
• C) customers have very different needs and uses for the industry's products.
• D) product innovation is the key competitive factor.
• E) industry rivalry is high and customers are very sensitive to prices.

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Definitions:

Nondisclosure

Refers to the act of not sharing certain information that is usually confidential or proprietary.

Assertion

A confident and forceful statement of fact or belief.

Unintentional

An action or outcome occurring without deliberate intent or plan.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.