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) A firm may charge the same price as its competitors but make a higher profit

Question

Quizplus · Accepted Answer

Pursuing cost leadership allows a firm to produce goods or services at a lower cost than their competitors, thereby enabling them to charge the same price but make a higher profit. This gives them a competitive advantage and can lead to long-term success.

Which of the Following Is an Advantage of Pursuing Cost