Which of the Following Is an Advantage of Cost Leadership

question 46

Multiple Choice

Which of the following is an advantage of cost leadership?

• A) It makes a firm following this strategy well positioned to withstand price competition from rivals.
• B) The need for high sales volume requires low upfront investments in production and/or distribution capacity.
• C) In markets that involve a lot of brand loyalty, cost leadership companies command the largest share in the market.
• D) Low expenditure on market research helps firms following the cost leadership strategy to detect important environmental changes at a lower cost.
• E) Highly fragmented markets offer firms following this strategy greater opportunities to attract a large segment of customers.

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Definitions:

Competitions

Events or activities where individuals or groups vie against each other to achieve a goal or win a prize.

Unconscionable

Describes actions or terms that are so unjust or overwhelmingly one-sided that they are considered contrary to fair play.

Public Policy

Guidelines and principles that reflect the societal values and interests which guide lawmakers and government actions.

Statute Violation

An act that breaks a specific statute law, which can be either a criminal or civil law, established by a legislative body.