Which of the Following Is an Example of a Best-Cost

question 12

Multiple Choice

Which of the following is an example of a best-cost provider strategy?

• A) Different car manufacturers compete in the tiny super car category with prices starting at $150,000 and running as high as $600,000.
• B) Aerodoungle's Eridla brand is considered a luxury car. Some of Eridla's models like the ES model, however, are in the midrange of prices for cars.
• C) Global furniture retailer Rusicwood provides customers with affordable solutions for better living by offering home furnishings that combine good design, function, and quality with low prices.
• D) Wild Hog builds motorcycles that target only the high end of the heavyweight market-the high-end premium cruiser market-with names such as Wolf, Mastiff, and Bulldog.
• E) Streetsuit's everyday low prices (EDLP) strategy hinges upon its ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers.

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Definitions:

Equilibrium

A state in a market where the quantity supplied equals the quantity demanded, leading to a stable situation where there is no tendency for change.

Economic Rents

Payments made to a factor of production in excess of what is needed to keep it in its current use.

Supply Of Land

The total available land that can be used for agriculture, construction, or other purposes, often considered fixed in the short term.

Price Of Land

The monetary value assigned to a piece of land based on its characteristics, location, and the market demand and supply.