Which of the Following Strategies Is Being Followed by a Company

question 10

Multiple Choice

Which of the following strategies is being followed by a company that is based on creating a service that is considered to offer unique service elements for which customers may consider paying higher prices?

• A)​Focus Strategy
• B)​Differentiation Strategy
• C)​Cost Leadership Strategy
• D)​Exclusivity Strategy

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Definitions:

Cash Flows

The total amount of money being transferred in and out of a business, serving as a measure of its financial health.

Contribution Margin

The amount that one unit contributes to profit. It is defined as price minus marginal cost.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, or insurance premiums.

Break-Even Quantity

The amount you need to sell to at least break even (make zero profit). The formula (assuming that you can sell all you want at price and with constant marginal cost) is Q = F/(P - MC), where F is fixed costs, P is price, and MC is marginal cost.