While Aros Inc

question 41

Multiple Choice

While Aros Inc.incurs a cost of $20 for a pair of shoes,Shoes Cult Inc.,its competitor,manufactures a pair of shoes at $22.Both the companies are able to sell their shoes for a maximum of $30 per pair.Which of the following statements is true in this scenario?

• A) Both Aros and Shoes Cult have achieved differentiation parity.
• B) Aros is a cost-leader when compared to Shoes Cult.
• C) Aros has created a greater economic value than Shoes Cult.
• D) Shoes Cult has a competitive advantage over Aros.

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Definitions:

Wrong Type

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