All of the Following Are Possible Threats to the Differentiation

question 191

Multiple Choice

All of the following are possible threats to the differentiation strategic position except ________.

• A) new technology
• B) failing to increase buyers' willingness to pay
• C) underestimating costs
• D) lower-cost imitation

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Definitions:

Increasing-Cost Industry

An industry in which the costs of production increase as the output expands, usually due to factors like shortages of resources or increased prices of inputs.

Increasing Returns

A situation in economics where an increase in the scale of production leads to a greater than proportional increase in output, often resulting in economies of scale.

Fixed Factor Prices

A condition where the prices of inputs used in production, such as labor or raw materials, remain constant regardless of the output level.

Long-Run Supply Curve

A curve showing the relationship between price and quantity supplied over time, assuming all factors of production can be varied.