Which of the following factors increases pressures for cost reductions?
A) Meaningful differentiation between products
B) Reduced international competition
C) Competitors that are based in high-cost locations
D) High switching costs
E) Persistent excess capacity

Question

Quizplus · Accepted Answer

Persistent excess capacity creates a situation where there is more supply than demand, which increases competition and puts pressure on companies to lower costs in order to stay competitive.

Which of the Following Factors Increases Pressures for Cost Reductions