Which of the Following Is a Disadvantage of Cost Leadership

question 33

Multiple Choice

Which of the following is a disadvantage of cost leadership?

• A) The presence of a cost leader in an industry tends to discourage new firms from entering the business.
• B) Low prices for goods and services always lead to low customer base.
• C) Downplaying research and development can slow cost leaders' ability to respond to changes once they are detected.
• D) Cost leadership strategy makes companies vulnerable to price competition from rivals.
• E) Cost leadership strategy breaks down barriers to entry that protect the firm from new competition.

---

Definitions:

Salutation

A form of greeting in writing or spoken communication, often used at the beginning of a letter or message to address the recipient.

Short Sentences

Concise constructions in writing that convey information clearly and directly, often enhancing readability.

Abstract Language

Language that expresses ideas and concepts in a general and less tangible manner, as opposed to concrete language that describes specific, observable entities.

White Space

The unmarked areas of a page or screen that help improve readability and design by breaking up text and elements.