If a low-cost firm has already achieved the maximum efficient scale, it must turn to differentiation to distinguish itself from competitors.

Name: If a low-cost firm has already achieved the maximum efficient scale, it must turn to differentiation to distinguish itself from competitors.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Once a firm has achieved maximum efficient scale, it cannot further reduce costs through economies of scale, so it may need to differentiate its products or services to maintain a competitive advantage.

If a Low-Cost Firm Has Already Achieved the Maximum Efficient