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The Problem of Overcoming a Cost Disadvantage Becomes More Difficult

Question 20

Multiple Choice

The problem of overcoming a cost disadvantage becomes more difficult for existing firms that share their output with their related businesses:


A) if gaining distribution is particularly difficult
B) when strong product differentiation exists among current players
C) if the industry has strong capital requirements at the outset
D) when strong economies of scale and learning effects are present

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