A Competitive Strategy to Be the Low-Cost Provider in an Industry

question 27

Multiple Choice

A competitive strategy to be the low-cost provider in an industry works well when

• A) price competition among rival sellers is especially vigorous.
• B) commodity-based product prevails and minimal differentiation exists.
• C) buyers incur low costs in switching their purchases from one seller/brand to another.
• D) industry newcomers use low introductory prices to attract buyers and build a customer base.
• E) All of these.

---

Definitions:

Monocline

A geological fold in which all strata are inclined in the same direction, creating a step-like feature in the landscape.

Anticline

A type of fold in rock layers that arches upwards, with the oldest layers at the core of the fold.

Horsts And Grabens

Geological structures formed by the movement of the Earth's crust, where a "horst" is an elevated block surrounded by faults and a "graben" is a depressed block bordered by faults.

Normal Faults

Cracks in the Earth's crust where one block of rock drops down relative to another due to extensional forces.