For a Best-Cost Provider Strategy to Be Successful, a Company

question 58

Multiple Choice

For a best-cost provider strategy to be successful, a company must have

• A)excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product.
• B)resource strengths and competitive capabilities that allow it to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes.
• C)access to greater learning/experience curve effects and scale economies than rivals.
• D)one of the best-known and most respected brand names in the industry.
• E)a short, low-cost value chain.

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.

Different Rents

Variations in rental prices, often influenced by factors such as location, demand, and property features.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Interest

The cost of borrowing money, often expressed as a percentage of the amount borrowed, paid to the lender over a specified period.