A low-cost company is often best positioned to survive price rivalry in its industry.

Question

Quizplus · Accepted Answer

A low-cost company has a cost advantage over its competitors, allowing it to sell products at lower prices without sacrificing profit margins. This makes it difficult for competitors to compete solely on price, as they cannot match the low prices of the low-cost company without also reducing their own profit margins. Therefore, a low-cost company is often best positioned to survive price rivalry within its industry.

A Low-Cost Company Is Often Best Positioned to Survive Price