Which of the Following Is Not One of the Pitfalls

question 55

Multiple Choice

Which of the following is not one of the pitfalls of a low-cost provider strategy?

• A) Overly aggressive price cutting
• B) Using a cost-based advantage to improve the company's bargaining position with high-volume buyers
• C) Relying on an approach to reducing costs that can be easily copied by rivals
• D) Cutting prices more than the size of a company's cost advantage
• E) Becoming too fixated on cost reductions so that the company's products are too features-poor

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Definitions:

Inputs Prices

The prices of the resources used in the production process, including labor, raw materials, and capital.

Production Technology

The combination of techniques, machinery, and processes used in the production of goods and services.

Supply Curve Shifts

Movements of the supply curve due to changes in factors other than the price of the good, indicating changes in supplier behavior.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specific period.