Which of the following is an advantage of pursuing cost leadership?
A)Sales always increase with increasing amounts of output
B)Loss of sales does not reduce scale benefits
C)The strategy easily accommodates changes in the market
D)Firms invest heavily in differentiating their products
E)A firm may charge the same price as its competitors but make a higher profit

Question

Quizplus · Accepted Answer

Cost leadership allows a firm to charge the same price as competitors but achieve higher profit margins due to lower production costs. This strategy focuses on efficiency and economies of scale, rather than differentiation or adapting quickly to market changes.

Which of the Following Is an Advantage of Pursuing Cost