Relative to a leader,a challenger is often at a cost disadvantage.This is mainly because of:
A)the relative brand equity of the leader
B)the experience curve effects established by the leader
C)diminishing returns to scale experienced by the challenger
D)the network effects enjoyed by the leader

Question

Quizplus · Accepted Answer

The experience curve effects established by the leader often result in lower costs for the leader due to accumulated experience and efficiencies, putting challengers at a cost disadvantage.

Relative to a Leader,a Challenger Is Often at a Cost